Mokashi, who mortgaged his house to make the film on Dadasaheb Phalke, the father of Indian cinema, said Oscar was never a "big deal" for him. However, he is happy that the low-budget film has created an impact in the country.

"It is not a big deal. Oscar was just another competition. I am more excited about the fact that my film will be released in theatres later this month," Mokashi said.

When asked about India's continued disappointment at the biggest award ceremony, the director said we should not obsess with Oscars so much.

"It is the Academy's decision, and it should not be debated. All awards are subjective, be it east or west. It is not possible to make a film that will appeal to all. The only way out is to make a film that you are convinced about," Mokashi said.

The low-budget film, which revolves around Dadasaheb Phalke on his obstacle-ridden journey to make Raja Harishchandra, which was screened at Mumbai's Coronation Cinema in 1913 and marked the beginning of Indian cinema, failed to advance to the next round of voting in the Foreign Language Film category.

The film stars theatre artistes Nandu Madhav and Vibhawari Deshpande.

Mokashi said that with Harishchandrachi Factory he has shown that a film does not need big stars or a huge budget to be good.

In a statement, the Academy of Motion Picture Arts and Sciences said nine films will advance to the next round of voting in the category for the 82nd Academy Awards. Sixty-five films had originally qualified in the category.

According to the Academy, the Foreign Language Film nominations were determined in two phases.

"The Phase I committee, consisting of several hundred Los Angeles-based members, screened the 65 eligible films between mid-October and January 16. The group's top six choices, augmented by three additional selections voted by the Academy's Foreign Language Film Award Executive Committee, constitute the shortlist.

"The shortlist will be winnowed down to the five nominees by specially invited committees in New York and Los Angeles."

The 82nd Academy Awards nominations will be announced on February 2, and the Oscars will be presented on March 7.

The nine shortlisted films are El Secreto de Sus Ojos (Argentina), Samson & Delilah (Australia), The World Is Big and Salvation Lurks around the Corner (Bulgaria), Un Prophete (France), The White Ribbon (Germany), Ajami (Israel), Kelin (Kazakhstan), Winter in Wartime (The Netherlands) and The Milk of Sorrow (Peru).