The Union Cabinet has approved the merger of all the film media units under the ministry of information and broadcasting (MIB)- Films Division, Directorate of Film Festivals, National Film Archives of India, and Children’s Film Society, India,—into National Film Development Corporation (NFDC). NFDC will act as an umbrella organisation to ensure better coordination, efficiency & synergy in achieving the mandate of the bodies and will be uniquely placed with regard to promotion, production and preservation of filmic content, all under one management.

“The vision of the new entity will be to ensure a balanced and focussed development of Indian cinema in all its genres- feature films, including films and content for over-the-top (OTT) platforms, children's content, animation, short films and documentaries,” said the Cabinet in an official statement.

Prakash Javadekar Announces Merger

Established in 1975, NFDC is a Central Public Sector Undertaking (CPSU) that works towards planning and promoting an organised, efficient and integrated development of the Indian film industry. This merger will assist in better utilisation of infrastructure and manpower, ensuring reduction in duplication of activities and direct savings to the exchequer. 

The Cabinet has also approved the appointment of a "transaction advisor" and a "legal advisor" to advice on the transfer of assets and employees and oversee all aspects of the operationalisation of the merger. "While undertaking this exercise of convergence, interests of the employees of all the concerned media units will be fully taken care of and no employee will be retrenched," it added.

It is expected that the government may offer a one-time fund corpus to help NFDC establish the essential system, after which, the onus lies completely on the latter to fund and run itself. 

The government has clarified that there will be no retrenchments and the rights of all employees, under all units, will be protected.

Objectives of the four units:

1. The Films Division works to produce documentaries and news magazines for the publicity of government programmes and cinematic record of Indian history

2. The National Film Archives of India aims to acquire and preserving Indian cinematic heritage

3. The Children's Film Society, an autonomous organisation, provides children and young people value-based entertainment through the medium of films

4. The Directorate of Film Festivals promotes Indian films and cultural exchange