Chennai, Nov 18 (IANS) South India will emerge as a major hub of the Rs.584-billion (Rs.58,400-crore/$12-billion) Indian entertainment industry that is expected to touch Rs.105,200 billion by 2013, according to Tamil Nadu Chief Minister M. Karunanidhi.

'The south is now full of activity,' Karunanidhi said at the inauguration of the annual Media and Entertainment Business Conclave, organised by the Federation of Indian Chamber of Commerce and Industry (FICCI), here Wednesday.

'Sony Pictures announced the opening of its facility in Chennai last year. Warner Brothers and (city-based) Prasad Corporation have announced a strategic alliance, which will bring their combined skills in digital post-production and film restoration to clients in Hollywood, India and around the world,' he said.

Karunanidhi also said his government would set up a welfare board for the cinema industry help develop a film city in the state.

Maintaining that the state administration has been supporting the sector, the chief minister said it had reduced entertainment tax from 54 percent to 25 percent, apart from totally waiving off tax on movies with Tamil titles.

Karunanidhi said Tamil Nadu's entertainment industry has a long track record, and urged stakeholders to ensure that the state emerged as India's entertainment epicentre.

In her address, Information and Broadcasting Minister Ambika Soni said the central government would beef up the communication towers network in border areas to counter anti-Indian propaganda.

'A sum of Rs.100 crore will be invested for the purpose,' she added.

According to her, the government has given the go-ahead to over 500 television channels.