The Tourism Finance Corporation of India (TFCI) was set up in 1989 as a public limited company by the IFCI and other banks to provide financing for tourism and tourism-related activities and services in India. TFCI provides loans, guarantees, and advisory services to projects in areas like hotels, restaurants, resorts, transport, travel agencies and more. It aims to promote tourism development and investment across various locations in India. IFCI remains the largest shareholder of TFCI, holding around 42.5% of its shares.

1. TOURISM FINANCE
CORPORATION OF INDIA(TFCI)

2. INTRODUCTION
• 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.
• 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. BACKGROUND
IFCI
TFCI

4. Institutes involved behind setting up of TFCI are:-
• IFCI
• SBI
• LIC
• Bank Of India
• United India Assurance Company

5. PURPOSE
• The assistance provided will be used for the
development of tourism and tourism related
activities, facilities and services.
• It includes travels agents, highways facilities, car
rental services, airport facilities, restaurants and
holiday 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.

6. VISION
Centre of excellence for tourism and hospitality
(CETH)

7. MISSION
• 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 government
of India.

8. 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 social and political unrest and spread of
diseases.

9. BOARD OF DIRECTORS
Shri S. B. Nayar
Chairman
Smt. Shashi Sharma
Managing Director
Smt. Usha Sharma
Nominee Director, Ministry of
Tourism
Shri Sanjeev K. Jindal
Nominee Director, Ministry of
Finance
Shri V.P.Singh
Director
Shri Niraj Agrawal
Director
Shri Samir Kumar Ganguli
Director
Shri Vivek Nair
Director

10. FUNCTIONS
• Financial assistance for setting up or
development of tourism related activities.
• Tourist-flow survey
• Facilities and services for tourists
• Preparation of tourism master plans
• Planning for amusement/ national park.

11. FINANCE PROJECTS 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 services

12. FORMS OF FINANCIAL ASSISTANCE
• Rupee loan
• Equipment finance
• Assistance under suppliers credit
• Working capital financing
• Take over financing
• Advances against credit card receivables

13. ADVISORY SERVICES
• Project-Related Services
• Tourism-Related Studies/ Services
• Government Sector
• Private Sector
• Other Activities /Programs

14. SHAREHOLDING PATTERN OF TFCI
•
Name of shareholders Holdings
No of Shares (in lakhs) Percentage
IFCI Ltd. 343.04 42.50
SBI 74.16 9.19
Bank of India 37.90 4.70
LIC 62.13 7.70
United India Insurance Co. Ltd. 11.98 1.48
The Oriental Insurance Co. Ltd. 10.42 1.29
Bodies Corporate 48.55 6.01
Mutual Fund .06 0.01
Other Banks/ Financial
Institutions
2.41 0.30
Foreign Institutional Investor 1.95 0.24
Trust 0.15 0.02
NRI 3.95 0.49
General Public 210.47 26.07
Total 807.17 100.0