Kochi, June 16 (IANS) The factional feud in the Malayalam film industry reached its climax Monday as top artistes, including directors and producers, announced the formation of a new organisation in defiance of a leading group for technicians.

Malayalam film superstar Mohanlal, announcing the decision, said: 'A new organization has become a necessity and we are sure that this new one would take the industry to greater heights.'

Director Siddique has been named to head the adhoc committee, which will oversee the formation of the new organisation. The committee has been given three weeks' time to formally launch the organisation.

The meeting was attended by almost all leading actors of the Malayalam film industry including superstars Mohanlal and Mammootty.

For the past two weeks, Kerala's film industry has been in a flux after a feud between leading technicians' organisation, Federation of Malayalam Cine Technicians Association (MACTA), and the powerful actors' organisation, Association of Malayalam Movie Artistes (AMMA).

The MACTA comprises 19 organisations that represent all those associated with filmmaking, from drivers to directors besides script writers and professionals from every field - barring producers, actors and actresses, who owe allegiance to AMMA.

A standoff between director Thulasidas and actor Dileep has caused the fracas.

Thulasidas has alleged that Dileep, after taking a payment of Rs.4 million four years back for a film, withdrew from the project following a string of flops by the director.

The MACTA has said the actor should work for the director while the AMMA is reportedly supporting Dileep.