The document summarizes the Tourism Finance Corporation of India (TFCI), an All India Financial Institution established in 1989 to provide financing for tourism infrastructure projects. TFCI provides long-term loans, underwriting, and guarantees to tourism projects. It has helped develop over 46,000 hotel rooms and has sanctioned over Rs. 7815 crore to 773 projects. In addition to project financing, TFCI also engages in advisory services, policy support, research, and promoting tourism development. It aims to help India utilize tourism as an engine for economic growth and employment.

1. Prepared by: Sajan N Thomas
Asst Professor
Marian College, Kuttikkanam

2. Intro
 The TFCI was set up on 1 February 1989 as public
limited company under the companies act by the
IFCI and some banks.
 It had paid up capital of Rs.50 crore. (now 80.72
crores)
 It is specialized in 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.
 Head office: New Delhi

3.  Tourism Finance Corporation of India
Ltd.(TFCI) has been set-up as an All India
Financial Institution, pursuant to the
recommendations of “National Committee on
Tourism” set-up under the aegis of Planning
Commission in 1988.
 The main object of setting-up the specialised
financial institution was to expedite the growth
of tourism infrastructure in the country by
providing dedicated line of credit on long term

4. The philosophy behind
 “Tourism Finance Corporation of India
Ltd (TFCI)” was formed to function as a
specialised All India Development Financial
Institution to cater to the financial needs of
tourism industry.
TFCI’s VISION
 Help India in exploring the potential of Tourism as an engine
for economic growth including generation of employment
opportunities.
 Help India showcase her tourism treasure to the world
through creation of Tourism Infrastructure.
 Make India a preferred destination for globe-trotters by
expanding the horizon of Tourism.
 To make long term resources available for creation /

5. Institutes involved behind setting
up of TFCI are:-
The responsibility for setting-up of TFCI was
initially entrusted to IFCI Ltd. in participation
with other All India Financial Institutions and
Banks.
 IFCI
 SBI
 LIC
 Bank Of India
 United India Assurance Company

6.  TFCI has been operating profitably since its
inception.
 As on date, more than 60% of its equity is
jointly held by IFCI / LIC / State Bank of India /
Bank of India and other banks and financial
institutions,
 The majority being with IFCI who holds 39.10%
of equity.
 TFCI raises long term resources from the
market by way of Issue of Bonds besides
utilising internal accruals.

7.  The assistance sanctioned so far has helped
in creating over 46,000 rooms in approved
category of hotels which represents
approximately 1/3rd of the total rooms capacity
in the country.

8.  TFCI has successfully cumulatively sanctioned
assistance aggregating Rs.7815 crore upto 30th
September, 2015 to 773 projects mainly in
tourism.
 TFCI provides financial assistance by way of
rupee loan, subscription to equity / debentures
and corporate loans mainly to hotel projects,
amusement parks, ropeways, multiplexes,
restaurants etc.
 TFCI has expanded the scope of its activities by
including financing of infrastructure projects, real

9. Name of Shareholder %
I.Promoters/Promoters Group
(i)IFCI Ltd. 2.09
(ii)Life Insurance Corporation of India 5.72
(iii)The Oriental Insurance Co. Ltd 1.07
Total Promoters Holding 8.87
II.Non Promoters Shareholders
2.Mutual und 0.71
3.other Banks/Financial institutions 0.05
4.Foreign Portfolio Investors 10.67
5.Govt of India-IEPF Account 0.77
5.Bodies Corporates 31.42
6.Individual Shareholding (General Public) 42.53
7.Trust & Cooperative Society 0.02
8.NRI 4.96
Total Public shareholding 91.13
Grand Total 100

10.  Recently Delhi-based Non-Banking Finance
Company (NBFC) Redkite Capital Pvt Ltd and
Sajeeve Thomas purchased shares from IFCI

11. Functions - Overview

12. 5 functional areas of TFCI
 Financial Services
 Advisory services
 Planning and policy support
 Developmental role
 Research & Consultancy

13. Tourism Project Financing
 TFCI provides all forms of financial assistance
for new, expansion, diversification, renovation /
modernization projects in tourism sector
services sector and related activities, facilities
and services.

14. Types of Financial Assistance
 Rupee Loans (including short-term, medium-
term & long-term loans).
 Subscription to equity / debentures.
 Guarantee of deferred payments.
 Advance against Credit Card Receivables.
 Takeover financing or Refinancing.
 Bridge Loan.

15. Norms for Financial Assistance
 TFCI normally considers financial assistance to
projects with capital cost of at least Rs.20 crore.
 But for providing financial assistance to heritage
hotels, restaurants, food courts, pubs, tour
operators, travel agents, transport sector, health
spa / centers, recreational facilities and renovation
/ upgradation / expansion, lower project cost could
also be considered.
 The repayment of the loan shall be over a period
of 8-10 years after allowing moratorium upto 2
years from the date of commencement of
commercial operations.

16. Other Financing
 TFCI provides all forms of financial assistance
for new, expansion, diversification, renovation /
modernization projects in industrial /
manufacturing sector, real-estate sector on
selective basis, services sector and related
activities, facilities and services.

17. Advisory Services
 Since its inception, TFCI provides high-quality
research and Consultancy services to the tourism
industry.
 In line with this, TFCI has been providing
Consultancy services to different central and state
agencies by to facilitate identification,
conceptualization, promotion / implementation of
specific tourism-related projects
 Besides, TFCI has been providing specific project-
related services to various private sector clients.
TFCI has also successfully handled projects
involving development of viable project concepts
around lakes / water bodies, development of a
multi-facility amusement park complex etc.

18. Project-related Services for Private
Sector
 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.
 Other project related services transfer of
management, franchise tie-ups, selection of
design / project / architectural consultants etc.

19. Planning and policy support
TFCI also co-ordinates and formulates
guidelines and policies related to financing of
projects. TFCI has pioneered and innovated
various products in financing the diverse
needs of the industry such as:
 the first Amusement-cum-Water Park at Mumbai,
 the first Water Sports Complex at Goa,
 the Palace on Wheels,
 the highly acclaimed spa The Ananda at Himalayas,
 the restoration of heritage resorts namely the Devigarh
Palace at Udaipur,
 conversion of Umaid Bhawan Palace into a resort hotel
etc.

20. Developmental role
 TFCI organizes seminars /participates in
tourism-related activities organized by Ministry
of Tourism, Government of India and by the
trade bodies /associations etc.
 TFCI supports Central government, State
Governments and Private Sector.

21. Research & Consultancy
TFCI also provides high-quality research and consultancy
services to the tourism industry in general and to the
investors in tourism industry in particular. Some of them
are:
 Tourism-potential studies and identification of tourism circuits.
 Preparation of tourism-development Master Plans for state /
travel circuit / destination.
 Tourist profiles and image-rating studies.
 Tourist-flow surveys to assess destination draws, infrastructure
gaps and defining agenda for development.
 Carrying out accommodation and other infrastructure
assessment, augmentation improvement studies.
 Sustainable tourism development, environment impact
assessment studies carrying capacity of studies of wild-life
sanctuaries, national parks and other sensitive / critical areas.
 Transaction advisory services for PPP projects.

22. Questions

23. Thank you