HYDERABAD: The State government proposes to set up the country’s first digital entertainment city (DEC) that will house animation companies, film production houses, music and TV studios, training academies and an entertainment complex.

It will be established in association with FX Labs, Suresh Productions, Gemini TV and DQ Entertainment. The project will be managed by a special purpose vehicle, Digital Entertainment City Task Force (DECTF). Launch in June

This consortium consists of industry leaders, including Sashi Reddi, founder-chairman of FX Labs; Suresh Babu, MD and CEO of Suresh Productions; P. Kiran, Director of Gemini TV; Tapaas Chakravarthy, Chairman and CEO of DQ Entertainment; JA Chowdhary, Chairman of Nvidia and Sudhish R, CEO of Colorchips, along with Government representatives.

The entertainment academy would be launched by June this year and the first phase would be ready by December, said S.K. Joshi, IT Secretary.

He said that the Government will allot 100 to 200 acres of land. Several media houses, film production companies, animation and gaming companies within and outside India were being contacted.

The DEC will have incubators for start-up companies to make and test their products.Business model

Asked if the land would be the State’s equity, Mr. Joshi said that different business models were being worked out.

“We want to leave ample flexibility for the SPV to take decisions to attract even world majors to participate. Considering the enormous growth potential of the animation and gaming industry, I don’t want to predict the size of investments. But, we have made a good beginning,” he said.

Mr. Chakravarthy of DQ Entertainment said: “Indian animation and gaming industry is growing over 34.8 per cent CAGR and is expected to cross US $ 1.3 billion by 2010. This initiative by the State Government will not only generate tremendous revenues but sizeable employment. We are happy to be part of it.”