Govt Orders Producers To Pay 20% Of Extra Ticket Revenue

In what can be a big blow to Tollywood’s four big producers, the Telangana state government has issued an important order regarding the cinema ticket price hikes for the recent four films i.e Akhanda 2, The Raja Saab, Mana Shankara Vara Prasad Garu and PEDDI. The Telangana Home (General) Department issued the letter on August 18, 2026, directing the concerned producers to collect and remit 20% of the incremental revenue generated through the enhancement of cinema ticket prices.

According to the orders issued by the TG government, the 20% contribution will be paid towards the Telugu Film Industry Employees Federation Welfare Association Account, which is operated by the Telangana Film Development Corporation (TGFDC). With this order, the TG government has authorised the producers of the four films to collect the applicable 20% contribution from exhibitors on the additional revenue generated due to the increased cinema ticket prices.

The producers have also been directed to remit the entire amount collected to the TGFDC-operated welfare account, as per the existing government orders and instructions. The order was issued by the Principal Secretary to the Government, Home Department, Telangana Secretariat, Hyderabad.

The letter was addressed to the authorised signatories of 14 Reels Plus LLP, People Media Factory Private Limited, Shine Screens India LLP and Vriddhi Cinemas LLP. The government order also refers to several earlier orders and memos issued between 2021 and 2026 regarding cinema ticket rates and the contribution towards the welfare fund.

The latest order means that the producers of Akhanda 2, The RajaSaab, Mana Shankara Vara Prasad Garu and PEDDI will have to follow the 20% contribution system on the incremental revenue generated through the enhanced ticket prices. This is expected to add an additional financial responsibility for the producers of these big-ticket films, particularly as ticket price hikes are an important part of their box-office revenue plans.