He is now making a film, Mahadev, an unusual mix of a sattire & a romantic comedy set in rural India, starring Shreyas Talpade & Amrita Rao. Mahadev is being produced by Chetan Motiwalla & the shooting will commence in September 2007. He is also involved with the Mumbai based film school Whistling Woods International as chairman of the academic council.

Following that Shyam Benegal is directing an epic musical about love, jealousy and betrayal, inspired by George Bizet's classic Spanish opera Carmen. The story revolves around the eponymous Chamki, a beautiful gypsy girl with a fiery temper & is written by Shama Zaidi. The music is to be composed by the internationally renowned musician A. R. Rahman & lyrics to be penned by noted film writer, Javed Akhtar. Chamki, to be produced by Chetan Motiwalla, is in the casting stage & scheduled to go on floor in October 2008.