Marking the first time that the state government enters the entertainment industry, the Kerala Venture Capital Fund has acquired 40 percent equity in the production house Symphony Entertainment Private Ltd.

Kerala Venture Capital Fund is a company promoted by the Kerala State Industrial Development Corporation, the Kerala Financial Corporation and the Small Industries Development Bank of India.

"This is the first time that a Kerala government concern is entering into the entertainment industry. This is going to provide television software to all existing television channels in Kerala," said M.B. Sanil Kumar, finance director of the new company.

The new company, with an initial capital of Rs.10 million, would be headed by veteran Malayalam television personality V. Krishna Kumar, who was formerly with Asianet and Kairali TV channels.

It also has on board superstar Mohanlal, media personality Sashi Kumar and author Paul Zacharia.

"We have adopted a unique pooling of resources of those behind the formation of the company. Instead of spending on infrastructure, we are going to pool the available resources of our people. Mohanlal's latest studio here would be the hub of all the production," Kumar told .

He said their strength would be creativity and marketing of the programmes.

"Currently, the monthly requirement of programmes for all Malayalam TV channels is around 2,500 programmes. This is not being met. It is here that we will step in," said Kumar.