New Delhi, Dec 7 : The government has given up its plans to close down the National Film Development Corporation (NFDC), that has run up losses of over Rs. 27 crore and has now decided to restructure the organisation, the Rajya Sabha was informed Monday.

"We had thought of closing down the NFDC. Now, we are looking at revamping and rejuvenating NFDC," Information and Broadcasting Minister Ambika Soni said during question hour.

"We have also introduced a voluntary retirement scheme and have been able to reduce the staff from 211 to 141," she added.

She said NFDC's losses were due to the "decline of gross profit margins and loss of business of marketing of free commercial time (FCT) of Doordarshan and due to the loss of royalty after DD stopped acquiring films".

Asked why this had happened, she said that till the Prasar Bharati Act was passed, NFDC was permitted to retain the money from the commercials in the films when they were telecast on Doordarshan.

"After the Prasar Bharati Act was passed, Doordarshan has more authority and is independent to take its own decisions," Soni pointed out.

According to Soni, NFDC has outstandings of Rs. 36,75,17,102 (Rs. 367.5 million) from advertisement agents and has lodged cases against 16 such companies.

"We are pursuing the matter. Legal action has been taken and the money is being realised," Soni informed. (IANS)