Dreamworks gets Indian cash boost

The deal was announced on Wednesday

The film studio Dreamworks, co-founded by Steven Spielberg, is to receive $825m for film production, the studio's Indian partner says.

Reliance ADA Group, run by Anil Ambani, is one of India's biggest entertainment groups and a key player in Bollywood, India's Hindi film industry.

Dreamworks agreed a joint venture with Mr Ambani in October last year.

The new studio will make films in the US, injecting large amounts of Indian cash into America's film industry.

Hollywood director Steven Spielberg has made some of the biggest box office hits including ET, Schindler's List and Jaws.

Mr Ambani is the world's sixth richest man.

'Visionary step'

The deal was announced in New York on Wednesday by Mr Ambani along with Mr Spielberg and Stacey Snider of Dreamworks.

"This venture with Reliance opens a new door to our future," Mr Spielberg said in a statement.

"Their visionary step has given us a new set of dreams to work towards. Stacey and I thank them for their faith in us and their faith in the movie business," he said.

"We are delighted to partner with such uniquely talented individuals as Steven Spielberg and Stacey Snider," Mr Ambani responded.

"Ever since we looked at their business plan, I have never doubted that we would succeed in providing them with the financial muscle required to realise their dreams," he said.

Of the $825m funding announced by Reliance, the Indian company is expected to put in $325m while $325m is be raised from banks and $175m is to come from Disney.

Under the agreement, Dreamworks will make five to six films every year for global audiences.

Officials said production would commence this year for first release in 2010.