Tourism Finance Corporation of India

TOURISM FINANCE
CORPORATION OF INDIA
Submitted by:
Nikhlesh Matnani
Section – B
Roll no - 10
Introduction
 The TFCI was set up on 1 February 1989 as public limited company
under the companies act by the IFCI and banks
 It had paid up capital of Rs.50 crore
 It is specialized all India development financing institutions, which

provide assistance in the form of rupee loans, underwriting and
subscription to industrial securities
 Other form of assistance is foreign loans , guarantees, supplier

credit
Purpose
 The assistance provided will be used for the development of tourism
and tourism related activities, facilities and services
 It includes travel agents, highway facilities, car rental services,

airport facilities, restaurants and holidays resorts
 TFCI provides advisory and merchant banking services in this field
 It is to co-ordinate activities and formulate guidelines relating to

finance tourism projects
Vision
 Centre of Excellence for Tourism and Hospitality (CETH)
Mission
 Catalyse and channelize investments into various segments of the
tourism industry and across various locations in a need based
manner
 Take steps to promote the tourism industry within the overall

framework of the Govt. of India policy
Tourism Industry
 The Travel and Tourism industry holds remarkable potential for the Indian
economy. Today, tourism is the largest service industry in India, with a
contribution of 6.23% to the national GDP and 8.78% of the total
employment in the country
 India witnessed more than 5 million annual foreign tourist arrivals and 650
million domestic tourism visits during 2009. The tourism industry in India
generated foreign exchange earning of US $11.39 billion in 2009 and is
expected to increase further during coming years.
 According to World Travel and Tourism Council, India will be a tourism hot-
spot from 2009–2018 having the highest 10 year growth potential.
The Travel and Tourism Competitiveness Report – 2007 ranked tourism in
India 6th in terms of price competitiveness and placed her 39th in terms of
safety and security.
Cont…
 The tourism industry requires a substantial investment and

improvements in the infrastructure at all levels whether in cities or
country as a whole. The connectivity and quick facilitation from the
airports, railway stations and city centres to Central Business
Districts (CBDs) is the most critical factors as far as international
tourists’ arrivals are concerned.
 This means that we must have an all-inclusive infrastructure
development plan in place connecting hotels to destinations/ and
attractions with reliable and better transport facility, ensuring safety
and security, being managed by trained tourist police and
volunteers.
Concerns
 Shortage of trained human capital
 Inadequate room-supply in big and small cities
 Poor connectivity from cities to tourists attractions
 Health and hygiene issues
 The internal security, social and political unrest and

spread of diseases
Corporate Governance
Policies
 Company believes that sound Corporate Governance is significant
to enhance and retain investors’ trust. Consequently, your company
always seeks to attain its predominant objectives with integrity.
Your company also endeavours to enhance long-term shareholder’s
value and respect their rights in all spheres
Board of Directors
Shri S.K. Mandal
Whole Time Director, IFCI Ltd.
Shri R.R.Rai
Executive Director, LIC of India
Smt. Archana kapoor

Chairman & Managing Director
Shri Sanjeev K. Jindal Shri O.N.Singh

Nominee Director, Ministry of Finance Ex-CMD, Allahabad Bank
Functions
 Financial assistance for setting up and / or development of tourism-
related activities
 Tourist-flow surveys
 Facilities and services for tourists
 Preparation of tourism master plans
 Planning for amusement / nature park

Resource raising
 TFCI has been mobilizing resources through a combination of debt
and equity. It made a public issue of equity shares in 1994
 Besides the paid up capital of Rs. 67.42 crores and the internal
generations, TFCI meets its requirements of funds by way of
borrowings viz. private placements of bonds, line of credit from
institutions /banks, certificate of deposit etc, at competitive rates with
a view to keep the cost of funds at minimum level.
Finance project related to
 Hotels
 Restaurants
 Holiday Resorts
 Multiplexes and Entertainment Centers
 Education and Sports
 Safari Parks
 Cultural Centers
 Convention Halls
 Transport
 Travel and Tour Operating Agencies
 Air Service
 Sports Facilities et
Forms of financial assistance
 Rupee Loan
 Underwriting of public issues of shares/debentures and direct

subscription to such securities
 Equipment Finance
 Assistance under Suppliers' Credit
 Working-Capital Financing
 Takeover Financing
 Advances Against Credit-Card Receivables

Clients
 Chandigarh Industrial & Tourism Development Corporation (CITCO)
 Government of Himachal Pradesh
 Uttar Pradesh State Tourism Development Corporation
 Ministry Of Environment & Forests, Government Of India
 Ministry of Tourism, Market Research Division
 Ministry of Railways
 Madhya Pradesh State Tourism Development Corporation Ltd
 UP Government
Cont…
 Bekal Resort Development Corporation Ltd. (Kerala)
 Government of Tripura Government of Union Territory of

Pondicherry
 Delhi Tourism Transport Development Corporation
 Rajas than State Mines & Minerals Corporation Limited
 Corporation of Chennai
 Tamil nadu Tourism Development Corporation
 Delhi Development Authority

Project related services
 Site evaluation studies
 Market-potential assessment for tourism projects
 Techno- economic feasibility studies
 Loan / Equity syndication services
 Financial restructuring of project proposals, review and appraisal
 Project implementation and monitoring services
 Pre-opening technical and facility planning services

Cont…
 Property evaluation including determination of terms for transfer
 Other project related services include assistance in finalisation of

arrangements franchise tie-ups, selection of design / project /
architectural consultants etc
Tourism related services
 Undertaking tourism-potential studies and identification of tourism
circuits
 Preparing tourism-development Master Plans for state/ travel

circuit / destination
 Undertaking Tourist-flow surveys to assess destination draws,

infrastructure gaps and defining agenda for development
 Carrying out accommodation and other infrastructure assessment,

augmentation improvement studies
 Undertaking studies for sustainable tourism development,

environment impact assessment and determining carrying capacity
of tourism activities in wild-life sanctuaries, national parks and other
sensitive / critical areas
Bibliography
 http://www.tfciltd.com/
 www.corporateinformation.com/Company-
Snapshot.aspx
 www.edelweiss.in/.../Tourism-Finance-
Corporation-of-India-Ltd.html
THANKS

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TOURISM FINANCE

 It had paid up capital of Rs.50 crore

 It is specialized all India development financing institutions, which

 Other form of assistance is foreign loans , guarantees, supplier

 It includes travel agents, highway facilities, car rental services,

 TFCI provides advisory and merchant banking services in this field

 It is to co-ordinate activities and formulate guidelines relating to

 Take steps to promote the tourism industry within the overall

 The tourism industry requires a substantial investment and

 Inadequate room-supply in big and small cities

 Poor connectivity from cities to tourists attractions

 Health and hygiene issues

 The internal security, social and political unrest and

Smt. Archana kapoor

Shri Sanjeev K. Jindal Shri O.N.Singh

 Facilities and services for tourists

 Preparation of tourism master plans

 Planning for amusement / nature park

 Underwriting of public issues of shares/debentures and direct

 Assistance under Suppliers' Credit

 Advances Against Credit-Card Receivables

 Government of Himachal Pradesh

 Uttar Pradesh State Tourism Development Corporation

 Ministry Of Environment & Forests, Government Of India

 Ministry of Tourism, Market Research Division

 Madhya Pradesh State Tourism Development Corporation Ltd

 Government of Tripura Government of Union Territory of

 Delhi Tourism Transport Development Corporation

 Rajas than State Mines & Minerals Corporation Limited

 Tamil nadu Tourism Development Corporation

 Delhi Development Authority

 Market-potential assessment for tourism projects

 Techno- economic feasibility studies

 Loan / Equity syndication services

 Financial restructuring of project proposals, review and appraisal

 Project implementation and monitoring services

 Pre-opening technical and facility planning services

 Other project related services include assistance in finalisation of

 Preparing tourism-development Master Plans for state/ travel

 Undertaking Tourist-flow surveys to assess destination draws,

 Carrying out accommodation and other infrastructure assessment,

 Undertaking studies for sustainable tourism development,

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