The Andhra Pradesh government, which has been urged to promote the Telugu film industry for the mutual benefit of the state's economy and Tollywood, has announced a slew of measures that incentive the shooting of small-budget movies (those being made with a budget of less than Rs. 4 Cr) in the state.

Among others, the state’s quota of GST and Location Fees will be reimbursed. A cash subsidy of Rs. 10 lakhs will be given to a maximum of 15 films in a year, provided a film has been certified to be a "Good Film" by a special committee.

To avail the above and other incentives, the production house's office should be registered in AP. The tax and other incentives, including the aforementioned subsidy, are only for those films which are entirely shot in AP.