The Government of India had, pursuant to the recommendations of the National Committee on Tourism viz Yunus Committee set up under the aegis of Planning Commission, decided in 1988, along with other All-India Financial/Investment Institutions and Nationalised Banks to promote a Public Limited Company under the name of "Tourism Finance Corporation of India Ltd. (TFCI)" to function as a specialised All-India Development Financial Institution to cater to the financial needs of tourism industry. TFCI was incorporated as a Public Limited Company under the Companies Act, 1956 on 27th January 1989 and became operational with effect from 1st February 1989.
TFCI provides financial assistance to enterprises, for setting up and/ or development of tourism related activities, facilities and services, which inter-alia include hotels, restaurants, holiday resorts, amusement parks and complexes for entertainment, education and sports, safari parks, rope-ways cultural centers, convention halls, all forms of transport industry, air-taxis, travel and tour operating agencies, tourism emporia, sports facilities etc. besides, TFCI also co-ordinates and formulates guidelines and policies related to financing of such projects. As a 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 provides all forms of financial assistance for new, expansion, diversification/ modernisation projects in tourism industry and/ related activities, facilities and services, in the following forms: •
Underwriting of public issues of share/ debentures and direct subscription of such securities •
Guarantee for deferred payments and credits raised in India and/or abroad •
Assistance under Suppliers of Credit
For meeting the fund requirements thereof as well as towards its various other business operations, TFCI raises resources directly from the market (at market-related interest rates) from retail as well as institutional investors - both within India and abroad, through a variety of investor-friendly instruments. TFCI's resource raising efforts have brought it closer to all sections of society. TFCI has been mobilizing resources through a combination of debt and equity. It made a public issue of equity shares in 1994. TFCI's shares are National Stock Exchange, Mumbai, Delhi, Ahmedabad and Madras stock exchanges. 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.
TFCI provides financial assistance to enterprises for setting up and/or development of tourism-related projects, facilities and services, such as, Hotels, Restaurants, Holiday Resorts, Amusement Parks, Multiplexes and Entertainment Centers, Education and Sports, Safari Parks, Rope-ways, Cultural Centers, Convention Halls, Transport, Travel and Tour Operating Agencies, Air Service, Tourism Emporia, Sports Facilities etc.
Forms of Financial Assistance
Underwriting of public issues of shares/debentures and direct subscription to such securities •
Guarantee of deferred payments and credit raised abroad. •
Assistance under Suppliers' Credit
Advances Against Credit-Card Receivables
Eligibility for Assistance
TFCI provides financial assistance to projects with capital cost of Rs. 3 crore and above. In respect of projects costing between Rs. 1 crore and Rs. 3 crore, TFCI will consider financial assistance to the extent of unavoidable gap, if any, remaining...
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