Cinema theatres in both Telugu states of Telangana and Andhra Pradesh will remain shut on Wednesday as a mark of respect to veteran director Dasari Narayana Rao, who died in Hyderabad on Tuesday night.
Theatre owners in both the state decided to keep the theatres closed.
Shooting of film and other activity in Telugu film industry will also come to a halt on Wednesday, announced the Telugu Film Chamber of Commerce.
Rao breathed his last at Krishna Institute of Medical Sciences (KIMS) at 7 pm on Tuesday. He was 75.
Rao, who was suffering from multiple health problems, was in hospital for more than two months before being discharged on March 28.
He was again admitted to KIMS last week and underwent reconstructive surgery of the oesophagus. Following the surgery, he had developed renal failure.
Born in Palakollu in West Godavari district of present Andhra Pradesh on May 4, 1942, he began his career as a stage artist and later entered the film industry.
Rao directed about 151 films in Telugu, Tamil and Hindi. He produced 53 films and worked in more than 250 films as a dialogue writer, and lyricist.
His death plunged the industry into a gloom. Eminent film personalities were rushing to his residence in Jubliee Hills here to pay their last respects.
Telangana Cinematography Minister T. Srinivas Yadav announced that Rao will be cremated at his farm house at Chevella near Hyderabad.
Yadav visited Rao's residence to pay his last tributes, and later told reporters, that on the direction of Chief Minister K. Chandrasekhar Rao, the last rites would be performed with state honours.
The body will be kept at his house from 6 am to enable people to pay their last respects. Family members said the body will be later shifted to the office of Telugu Film Chamber of Commerce where film industry will bid him adieu.
Later, the body will be taken to Chevella for last rites.