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
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