Tourism Finance Corporation of India Ltd is a Government of India Enterprises. The company is engaged in the business of financing tourism-related projects. They provide 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, and sports facilities.
The forms of financial assistance include rupee loan, underwriting of public issues of shares/debentures and direct subscription to such securities, guarantee of deferred payments and credit raised abroad, equipment finance, equipment leasing, assistance under suppliers` credit, working-capital financing, takeover financing and advances against credit-card receivables.
The company also provides high-quality research and Consultancy services to the tourism industry in general and to the investors in tourism industry in particular. In line with this, TFCI has been providing Consultancy services to different central and state agencies by undertaking broad-based assignments to cover macro & micro level tourism-related studies/ exercises to facilitate identification, conceptualization, promotion/ implementation of specific tourism-related projects & for taking policy level decisions with respect to investment and infrastructure augmentation etc. Besides, TFCI has been providing specific project-related services to various clients. It has also undertaken appraisal of individual projects for various state government agencies/individual clients.
The company 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.
Tourism Finance Corporation of India Ltd was incorporated on January 27, 1989 as a public limited company. The company became operational with effect from February 1, 1989 on receipt of certificate of the commencement of business from the Registrar of Companies. The company was promoted by IFCI Ltd along with other All-India Financial/ Investment Institutions and Nationalised Banks.
The company was set up as a specialized All India Financial Institution to cater to the financing requirements of the Tourism Industry at the instance of Government of India arising from the recommendation of National Committee on Tourism. In the year 1994, the company made a public issue of 1,70,00,000 Nos of equity shares of Rs 10 each at a premium of Rs 20 per share.
In the year 1999, the company had gone towards the setting up of non-conventional tourism projects like restaurants, highway facilities, travel agencies, amusement parks, dolphinarium, ropeways, car rental services, ferries for inland water transport, airport facilitation centre, training institute for hotel personnel etc. In the year 2000, Tourism Advisory & Financial Services Corporation of India Ltd was amalgamated with the company.
During the year 2008-09, the company took possession of 3 hotels located at Mukundgarh, Bikaner & Jaisalmer under the SRFAESI Act. During the year 2009-10, the company ventured into infrastructure project financing business viz., power, ports, airports, roads and bridges etc., which is expected to give a fillip to tourism and hospitality projects.
The company has been pursuing to expand its portfolio not only by extending facilities to existing hotel properties for renovation, upgradation and setting up of new projects, but also has been actively pursuing consultancy assignments for various state governments for drafting the tourism policy and other projects for tourism/ circuit development etc.