 bill no xvi of  2006 the national films development authority bill, 2006 a billto provide for the establishment of a national films development authority for ensuringthe overall development of film industry and for matters connected therewith or incidental theretobe it enacted by parliament in the fifty-seventh year of the republic of india as follows:—1 (1) this act may be called the national films development authority act, 2006short title and commencement    (2) it shall come into force with immediate effectdefinitions 2 in this act, unless the context otherwise requires,—(a)  "authority" means the national films development authority establishedunder sub-section (1) of section 4;(b)  "chairperson" means the chairperson of the authority; (c) "prescribed" means prescribed by rules made under this act;3 the central government shall take all such measures as it deems necessary or expedient for the overall development of the film industry in the country by prescribing guidelines for that purposepower of central government to take measures for the development of film industryestablishment of authority4 (1) the central government shall, by notification in the official gazette, establish for the purposes of this act an authority to be called the national films development authority(2) the head office of the authority shall be at mumbai (3) the authority shall consist of the following members who shall be appointed by the central government namely:—(a) the chairperson who is an expert in the field of the film industry; (b) one member to represent the union ministry of information and broadcasting;(c) one member to represent the union ministry of culture; (d) one member to represent the union ministry of human resource development;(e) five members to represent eastern, western, southern and northern regions and mumbai cinema;(f) one member-secretary(4) the term of office of the chairperson and every other member shall be three years (5) the salaries and allowances payable to and the other terms and conditions of service of the chairperson and members shall be such as may be prescribed(6) the authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property both movable and immovable, and to contract and shall by the said name sue and be sued(7) the authority shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings, as may be prescribed5 (1) for the purposes of discharging its functions, the authority shall appoint such number of officers and other employees, as it may consider necessary on such terms and conditions as may be prescribedappointment of officers, adviser consultant and other employees of authority(2) the authority may appoint, from time to time, any person from the film industry as adviser or consultant as it may consider necessary on such terms and conditions as may be prescribedfunctions of the authority6 (1) subject to any guidelines issued by the central government under section 3, the authority shall perform and undertake such special steps in close coordination with concerned ministries and departments of the central and state governments, the film industry and fraternity to ensure rapid and accelerated development of film industry in all the regions of the country where hindi or regional languages films are produced as it may deem necessary and expedient to do so for the overall development of film industry(2) without prejudice to the generality of the foregoing provisions, the authority shall,—(a) develop necessary infrastructure for film industry such as film cities, studios and sites with modern equipment to shoot films;(b) take up the issues pertaining to the film industry with the central and state governments so as to get concessions, duties and tax reliefs for the industry;(c) coordinate with the central government and state government to have a uniform entertainment tax regime throughout the country;(d) coordinate with the central government and banking sector and financial institutions to ensure easy loans at reasonable rates of interest to the film industry from such banks and financial institutions;(e) promote construction of cinema halls and see that cinema halls are not closed on frivolous grounds;(f) take such other measures for the overall development of film industry as it may deem necessary (3) the authority shall establish a national film museum at a conspicuous place preferably in mumbai to keep, preserve and display,—(a) the entire history of film industry, all the films right from the dumb era to the present day in cassettes, compact discs or microchips;(b) instruments, projectors and other gadgets used in producing films or composition of music of films since the beginning of the film industry in the country;(c) costumes, jewellery, dresses, etc used by famous film artistes, and doyens of film industry;(d) consolidated whose's who of the film industry right from the beginning of the industry to be got prepared by the authority within a time frame and revised from time to time7 on and from the date of commencement of this act,—effect of the establishment of the authority(a) all property, movable and immovable, of or belonging to national films development corporation shall rest in the authority;(b) every person employed by national films development corporation immediately before the commencement of this act shall hold his office or service in the authority for the same tenure, at the same remuneration and upon the same terms and conditions and same rights and privilegespayment to authority8 (1) the central government shall, after due appropriation made by parliament, by law in this behalf, pay to the authority in each financial year such sums as may be considered necessary for the performance of the functions of the authority under this act(2) the authority shall prepared in such form and at such time each year as may be prescribed, a budget, in respect of the financial year next ensuing, showing the estimated receipts and expenditure and copies thereof shall be forwarded to the central governmentfund of the authority9 (1) the authority shall have its own fund and all sums which may, from time to time, be paid to it by the central government and all the receipts of the authority including any sum which any state government or any other authority, body corporate, film personality or person may donate or hand over to the authority, shall be credited to the fund and all payments by the authority shall be made therefrom(2) the authority may spend such sums as it thinks fit for performing its functions under this act, and such sums shall be treated as expenditure payable out of the fund of the authority(3) the authority may also give financial assistance to the film artistes, musicians, supporting artistes and technicians who have devoted their life to the film industry and who are in distress due to old age, infirmity and uncared for their subsistence, medical treatment and other personal needs in such manner as may be prescribedannual report10 the authority shall prepare once in every calender year, in such form and at such time as may be prescribed an annual report giving a true and full account of its activities during the previous year and copies thereof shall be forwarded to the central government and that government shall cause the same to be laid before both houses of parliamentpower to remove difficulties11 (1) if any difficulty arises in giving effect to the provisions of this act, the centralgovernment may, by order published in the official gazette, make such provisions, not inconsistent with the provisions of this act, as appear to it to be necessary or expedient for removing the difficulty:—provided that no such order shall be made after the expiry of the period of two years from the date of the commencement of this act(2) every order made under this section shall, as soon as may be after it is made, be laid before each house of parliamentpower tomake rules12 the central government may, by notification in the official gazette, make rules tocarry out the provisions of this act statement of objects and reasonsevery year our country produces the largest number of films in the world majority of the films produced are in hindi followed by regional languages like tamil, telugu, malayalam, kannada, bhojpuri, gujarati, bengali, punjabi, assamese, rajasthani and other languages the film industry gives employment and means of livelihood to millions of people directly as well as indirectly this industry substantially contributes to the revenues of the central and state governments in the form of customs and excise duties, income tax, vat, entertainment tax, etc but, unfortunately, this industry has been left to fend for itself there is no exclusive agency to ensure overall development of this industry moreover, this industry is under threat of video and audio piracy though banks and financial institutions are supposed to provide loans to this industry but so far they are not forthcoming to help this industry as a result, the producers have to borrow finance  at a very high rate of interest the film industry has a very interesting and chequered history but there is not even a museum at the national level to preserve the history and legacy of  the industry similarly, many a time the film artist's at the fag end of their lives become indigent and helpless  and are in dire need of medical and financial assistance but no agency takes care of them and, unfortunately, they die a unsung death it has, therefore, become necessary to establish an exclusive authority in place of national films development corporation to take care of all these problems of the film industry and ensure the overall development of the industryhence the billhema malini financial memorandumclause 4 of the bill provides for the establishment of the national films development authority clause 8 makes it obligatory for the central government to provide funds to the authority the bill if enacted will involve expenditure from the consolidated fund of india it is estimated that a sum of rupees two thousand crores may involve as recurring expenditure per annuma sum of rupees five thousand crore may also involve as non-recurring expenditure from the consolidated fund of india memorandum regarding delegated legislationclause i2 of the bill empowers the central government to make rules for the purposes of the bill the rules will relate to matters of details onlythe delegation of legislative power is of normal character———— a billto provide for the establishment of a national films development authority for ensuring theoverall development of film industry and for matters connected therewith and incidental thereto————(shrimati hema malini, mp)mgipmrnd—1203rs(5)—160307