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 basis to tourism related projects in the country. TFCI has successfully played the role of investment catalyst for the tourism sector and has cumulatively sanctioned assistance aggregating Rs.7815 crore upto 30th September, 2015 to 773 projects mainly in tourism and other related sectors. 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. With a view to diversify in other related areas, TFCI has expanded the scope of its activities by including financing of infrastructure projects, real estate projects and manufacturing projects to a limited extent, within the scope of its activities.
TFCI, as a specialised financing institution, has contributed significantly in terms of creation of tourism infrastructure throughout the country and thereby generating direct employment opportunities. The assistance sanctioned so far has helped in creating over 46000 rooms in approved category of hotels which represents approximately 1/3rd of the total rooms capacity in the country. The assistance sanctioned by TFCI has helped in catalysing investment to the tune of Rs.26425 crore in tourism sector till 30th September, 2015 over a period of time.
The responsibility for setting-up of TFCI was initially entrusted to IFCI Ltd. in participation with other All India Financial Institutions and Banks. Accordingly, TFCI was set-up in 1989 with initial equity of Rs. 50 crore which now stands increased to Rs. 80.72 crore. TFCI has been operating profitably since its inception and as on 30th September, 2015, its free reserves aggregating Rs. 426.68 crore after payment of dividend regularly. 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.
TFCI views itself as a major investment catalyst for viable projects in tourism and other related sectors and play a dominant role in creating tourism infrastructure in the country.