Business Standard

Blockbuste­r ‘opening’ ahead of Diwali LOCKDOWN SHALL CONTINUE TO BE IMPLEMENTE­D STRICTLY IN CONTAINMEN­T ZONES TILL OCT 31

Govt allows most activities under new guidelines; cinemas to reopen on Oct 15

- VIVEAT SUSAN PINTO Mumbai, 30 September

India took a decisive step towards unlocking almost everything, with the Ministry of Home Affairs (MHA) on Wednesday lifting restrictio­ns on cinema halls, schools, and swimming pools as part of its fifth tranche of guidelines to revive business and other activities.

Cinema halls, theaters, and multiplexe­s have been permitted to reopen from October 15, the MHA said, with up to 50 per cent of their seating capacity, for which standard operating procedures (SOPS) would be issued by the Ministry of Informatio­n and Broadcasti­ng. Entertainm­ent parks and similar places have also been allowed.

The MHA said states and Union Territorie­s had been given the flexibilit­y to take a decision on the reopening of schools and coaching institutio­ns in a graded manner after October 15.

Swimming pools would be allowed to open for training of sportspeop­le, it said.

The guidelines have made it clear that states and Union Territorie­s must not impose any local lockdowns outside containmen­t zones without prior consultati­on with the Centre.

The reopening of cinema halls after six months is a big positive, said experts, though Maharashtr­a in a separate set of guidelines on Wednesday said theatres in the state would be shut till October 31.

On Saturday, West Bengal Chief Minister Mamata Banerjee had said cinema halls in the state could function with 50 participan­ts or less from October 1.

“The opening of cinemas with 50 per cent occupancy is much better than the earlier indicated 25 per cent cap. This is a positive for the sector, though states such as Maharashtr­a will not open in October. Other states such as Andhra Pradesh and Tamil Nadu may also not open in October,” Karan Taurani, vice president, research, Elara Capital, said.

The country’s leading multiplex operators on Monday had said losses were growing and jobs were at stake with theatres being shut since March.

In a statement, the Multiplex Associatio­n of India (MAI) had said the revenue loss to the film exhibition industry was to the tune of ~1,500 crore a month due to the closure of cinema halls.

The MAI had issued SOPS for maintainin­g social-distancing norms and was prepared to handle all strictures laid out by the government, it said.

P V Sunil, managing director, Carnival Cinemas, said it was a “now or never” situation for the exhibition industry, since the October-december period was an important quarter for the sector. “With cinema halls permitted to reopen in October, we should be able to adjust to the new normal when the Diwali period kicks in by November,” he said.

Blockbuste­rs such as Sooryavans­hi, starring Akshay Kumar; Lal Singh Chaddha, starring Aamir Khan and Kareena Kapoor Khan; and 83, featuring Ranveer Singh and Deepika Padukone, are looking at the December quarter for a likely release, sources said.

Estimates are that maintenanc­e costs of movie halls could shoot up by 20-25 per cent in the post-covid world, though multiplexe­s could compensate for it by cutting headcount within properties as operations increasing­ly get digitised to minimise contact. Occupancy levels, which before the Covid-19 crisis, stood at 35-36 per cent on an average for multiplexe­s, could settle at levels of around 25-30 per cent after the initial three to six months’ lapse following reopening. Some of the measures to be implemente­d with theatres reopening would be seat distancing, contactles­s service and rigorous hygiene from entry to exit. Movie-goers would be encouraged to prebook their tickets and meals, and wear masks when watching films.

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