TOURISM FINANCE CORPORATION OF INDIA

TOURISM FINANCE CORPORATION OF INDIA

Submitted by:Nikhlesh MatnaniSection – BRoll 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

Smt. Archana kapoor Chairman & Managing Director

Shri Sanjeev K. JindalNominee Director, Ministry of Finance

Shri S.K. MandalWhole Time Director, IFCI Ltd.

Shri R.R.RaiExecutive Director, LIC of India

Shri O.N.SinghEx-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