"Marathi cinema has been in conflict and had to bear the direct brunt of Bollywood and masala films. Marathi films really had to struggle, " Palekar said while speaking to reporters at a press conference here Monday.
Palekar's English film "And Once Again", starring Rituparna Sengupta and Rajat Kapoor, was premiered at the 40th International Film Festival of India (IFFI) here.
"It is really wonderful to see where Marathi cinema is today. It occupies the position that Bengali cinema and Malayalam cinema once had - the spearhead of non-mainstream cinema," the award winning actor director said.
Palekar may feel that Bollywood movies obstructed the growth of Marathi films, but it doesn't stop him from hiring Hindi film actresses for his directorial ventures.
He teamed up with Sonali Bendre in "Anahat" and for "And Once Again" he has roped in glamourous Antara Mali to play a monk.
Commenting on his choices of glamorous Hindi film actresses, he said: "At that time, people told me why have you taken Sonali... she cannot act and so on. But Sonali did an exceptional job in the film."
"Most of us have cliched views of artists. I am fortunate to be able to look beyond that and see what most people don't see."