The Govt. of U.P. vide its notification no. 1151/77-6-99 dated 22.05.1999 have declared “Cinema Halls and Multiplexes” as industry which would be eligible for all consideration as applicable to industries in the state of U.P..

To promote setting up Cinema Halls/Multiplexes, the Govt. had already declared following concessions/rebates:-

1. The entertainment tax has been reduced from 125% to 100%.

2. To encourage multiplexes which is the latest concept in technologicallyadvance system of film exhibition, it has been decided to promote construction of such Multiplexes which have atleast 3 Cinema Halls.

The state will provide 100% exemption of entertainment tax in the Ist year and 75% exemption for the Iind and IIIrd year to Multiplexes having investment above Rs. 1.5 Crore.

3. For the revival of closed Cinema Halls, the entertainment tax the entertainment tax exemption upto an extent of 30% for 3 years will be made available to those Cinema Halls which are re-opened.

4. To encourage upgradation of existing Cinema Halls by installing Modern Sound System, Air Conditioning, Major entertainment tax collection over and above the previous year tax collection upto a limit of 50% of the investment made in upgradation of Cinema Halls.

     5.    For encouraging setting up of New Cinema Halls in smaller towns of
            population of 3 lakhs, the owner is permitted.
            to retain 50% of the entertainment tax collection for a period of 3 yeears.

    6.     The local urban authorities would earmark land in prime locations for future
            development of Multiplexes and Cinema
            Cinema Halls.

Upto 30% of the covered area of the land would be allowed to be used for
commercial purpose provided Cinema Hall is constructed first.

7. Power produced by captive plants will be exempted form electricity duty.

8. As for industry, if a Cinema Hall utilizes as MCG in a few month, then they
would be billd for actual energy consumptions for the remaining month.

SAILIENT FEAUTRES OF THE SCHEME

1. ELIGIBILITY:

a) Any person who is willing to set-up Cinema House/Multiplexes in
the state of U.P. having sufficient means.

b) Any Cinema owner who intends to revive/upgrade it.

c) The location would be in municipal limit.

2. TERM OF ASSISTANCE

a) The amount of assistance shall not exceed to 100.00 lacs per project.

b) The D.E. be kept at 1:1.

c) The Security margin on tangible assets shall not be less than 25%.

d) The loan shall be repayable in 5 to 7 years in quarterly instalments
including gestation period of 18 months.

e) Land for the project will be fully paid-up.

3. SECURITY

a) The UPFC shall hold exclusive charge on the prime security.

b) Security debt on prime assets and collateral security should not be less
than 2:1.

c) Tripertite agreement between UPFC/Party/ Entertainment Deptt. for
watching the intere3st of Corporation incase of any eventuality.

4. SANCTIONING AUTHORITY Internal Committee.

5. MANDATORY CONDITION

100% initial investment condition to be imposed.