A big scarcity of funds is causing a lot of issues in the Telugu Film Industry right now. Producers, even seasoned ones, are finding it tough to raise money for their projects from financiers.

Multiple reasons are being given by analysts for this crunch. The global economic sentiment itself is in a bad position, leading to a general shortage of liquidity across all sectors. The banks have also tightened lending criteria and are now going after defaulters with a vengeance.

Apart from this, the call money issue and repercussions have frightened off many film financiers who used to lend money for 5Rs and 10Rs interest rates. These factors have contributed to the evaporation of private liquidity in the film industry.