Consultancy & Advisory Services

Since its inception, TFCI provides high-quality research and Consultancyservices 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. TFCI has also successfully handled projects involving development of viable project concepts around lakes/water bodies , development of a multi-facility amusement park complex etc.

TFCI's range of activities in the Consultancy Division covers tourism-related studies, surveys and project-related services. Coverage under project-related services and tourism-related studies include:

  Project-Related Services
  Tourism-Related Studies/ Services
  Govt Sector
  Private Sector
  Other Activities /Programmes

A) Project Related Services

1)  Site evaluation studies
2)  Market-potential assessment for tourism projects
3)  Techno- economic feasibility studies
4)  Loan / Equity syndication services
5)  Financial restructuring of project proposals, review and appraisal
6)  Project implementation and monitoring services
7)  Pre-opening technical and facility planning services
8)  Property evaluation including determination of terms for transfer / lease,preparation of related RFQ & RFP & transfer / lease documents etc.
9)  Other project related services include assistance in finalisation of arrangements for      lease / transfer of management, franchise tie-ups, selection of design / project /      architectural consultants etc.

B ) Tourism-Related Studies/ Services

1)  Undertaking tourism-potential studies and identification of tourism circuits.
2)  Preparing tourism-development Master Plans for state/ travel circuit / destination.
3)  Undertaking tourist profiles and image-rating studies.
4)  Undertaking Tourist-flow surveys to assess destination draws, infrastructure      gaps and defining agenda for development.
5)  Carrying out accommodation and other infrastructure assessment, augmentation &      improvement studies.
6)  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.
7)  Assessing need for and identifying specific policies and other promotional      measures for tourism development in any State.
8)  Undertaking appraisal of various Government programmes relating to tourism      promotion, development and making suggestions for improving effectiveness.
9)  Assistance in marketing projects identified by State Govt. including drawing up of      bankable project profiles

The range of TFCI's activities encompass a wide spectrum of tourism-related services: from 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, to individual tourism products; from project evaluation exercises to support services for privatization; from planning for amusement / nature parks, etc. to undertaking of environmental/ carrying-capacity studies.

Some of our clients who had availed of TFCI's Consultancy and Advisory Services

Govt Sector
  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
  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
  Tamilnadu Tourism Development Corporation
  Delhi Development Authority

Private Sector
  Nehru Place Hotels Ltd., New Delhi
  EIH Limited, Delhi
  Asian Hotels Ltd. (Owners of Hyatt Regency, New Delhi)
  Amir Parks and Amusement Pvt. Ltd., Bombay
  C. J. International Ltd. (Owners of Le Meridien, New Delhi)
  Fomento Hotels & Resorts Ltd. (Owners of Cidade De Goa, Goa)
  Noorjahan Hotels Ltd., Indore (under Taj Group)
  ITC Hotels Limited, N.Delhi
  Hotel Leela Venture Limited, Mumbai
  Risk Capital & Technology Finance Corporation, Delhi
  Paramount Water Sports & Resorts Ltd, Mumbai.
  Amrutha Hotels (P) Ltd., Hyderabad
  HLF Enterprises Pvt. Ltd., Gurgaon
  Sharda Resorts and Water Park Pvt. Ltd., Mumbai.
  Nishiland Park Ltd., Mumbai.
  Chandras' Green Project Ltd., Kolkata.
  Chandras' Hotels & Resorts Ltd., Kolkata
  Venkataramana Hotels, Hyderabad
  Grand Resorts International Limited, Puri, Orissa
  Shakti Tourist Complex Limited, Berur, Rajasthan
  Sri Lakshmi Gayathri Hotels (P) Ltd., Hyderabad
  Sukhmani hotels Ltd., Agartala
  Majestic Hotels Ltd., Ludhiana.
  Dolphin Adventure Sports Pvt. Ltd., Goa
  Innovision Properties Pvt. Limited, Kerala
  Vijay Infrastructure Projects Limited (S. Kumar's Group)
  Other medium sized hotel/resort projects at Pune, Varanasi, Dehradun,  Haridwar, Goa, Rajahmundary etc.

C ) Other Activities /Programmes

1.) Study of Security and Safety aspects of the hospitality industry

2.) Study of need for and devising of suitable Programmes for the promoters      entrepreneurs from the hospitality industry.

3.) Organized & co-ordinated National Seminar on Hotel Project Management for     entrepreneurs venturing into Hotel Industry.

Objective

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

  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
  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 after taking into account assistance from State Level Institutions/Banks. Unique projects, which are important from the tourism point of view and for which assistance from State Level institutions/ Banks is not available, may be considered on exceptional basis even though their capital cost is below Rs. 1 crore. Financial assistance is considered on similar lines for heritage and restaurant projects. Projects with high capital cost may be financed along with other All-India Financial/Investment Institutions. TFCI considers assistance even if the total cost is less than Rs. 3 crore for existing concerns with satisfactory performance for renovation/upgradation etc.

Promoters' Contribution

The minimum promoters' contribution for the projects is 30%. Relaxation may, however, be allowed in respect of large projects involving capital cost exceeding Rs. 50 crore

Debt Equity Ratio

TFCI extends term-loan assistance based on debt-equity ratio not exceeding 1.5:1. However, in case of hotels in seasonal locations/ multiplexes/ entertainment centers, amusement parks and other tourism-related projects, the debt-equity ratio would be stipulated in the range of 1:1 to 1.25:1.

Rate of Interest

The interest on the loans would be flexible depending on market and rating of the concern, as per the rating schedule developed for the purpose and adopted.

Security

First charge on movable and immovable fixed assets. Personal Guarantees of the Promoters and Corporate guarantee of the group concern, if necessary. Pledge of promoters' share-holding.

Repayment Schedule

This would depend on the period required for completion of the project and stabilisation of operations as also the projected cash-flows available for debt-servicing. The general norm of repayment is 8 years allowing moratorium of 2 years after full commercial operations. In case of multiplexes/ entertainment centers the cash-flows in the initial years are satisfactory; as such, the repayment of the loans to this sector could be made in 6-7 years allowing moratorium of 1-1½ years after full commercial operations.

Norms for Takeover Financing

TFCI may consider financing well-established, assisted concerns having over 3 years' satisfactory track record for takeover of tourism-related project/company.

Norms for Working-Capital Financing

The Working Capital assistance would be provided to concerns in the tourism sector with proven track record of atleast 3 years and assisted concerns of TFCI with satisfactory credit record. The working capital limit would be calculated based on the turnover method as may be considered appropriate.

Preamble

TFCI, in its continued and committed endeavor to provide prompt and quality service to its valued clients, has introduced this Citizens' Charter.
The Citizens' Charter is intended to provide information in respect of TFCI's various activities relating to customer service, for the benefit of its customers. It is not a legal document creating rights and obligations

Citizens' Charter of TFCI for Investors:
Responsive and Responsible

Introduction 

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:

 Rupee Loans
  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.
  Equipment Finance
  Equipment Leasing
  Assistance under Suppliers of Credit
  Advisory Services

TFCI follows RBI guidelines with regard to Individual and Group exposure norms in relation to the net owned funds of TFCI. Appraisal criteria for processing of tourism-related projects with regard to Promoters' contribution, Debt-Equity Norms, Average Room Occupancy levels and Rates are constantly reviewed by TFCI Board and the guidelines are formulated accordingly.

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

Resource Raising

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 and dematerialised with National Securities Depositories Ltd. (NSDL and Central Securities Depository Services (I) Ltd. (CSDSL).or Central Depository Services (India) Ltd. (CSDSL). CSDSL  depositories where the securities of an investor are held in electronic form through the medium of Depository Participants (DPs). This facility obviates the difficulties of loss, signing of transfer deeds, delay in transfer, etc. and offers scope for paperless trading.

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.

The addresses of the Registrar
MCS Ltd.,
Sri Venkatesh Bhawan,
W-40, Okhla Industrial Area, Phase - II
New Delhi – 110 020

Phone No 011-26384909/10/11/14
Fax No 011-26384907
E-mail : mcsdel@vsnl.com

Investor Relations

TFCI has an exclusive team of officers to attend to complaints / suggestions of equity- holders and bond-holders and assisted by Registrar namely MCS Ltd.

Grievance-Redressal Procedure

The following avenues are open to the investors for redressal of their grievances:

  Safari Parks
  Rope-ways
  Cultural Centers
  Convention Halls
  Transport
  Travel and Tour Operating Agencies
  Air Service
  Tourism Emporia
  Sports Facilities etc.

It is the endeavor of TFCI to provide prompt and efficient service to its investing public. An indicative time-frame for attending to various investor grievances is given below.
Time-frame

Payment of interest/dividend

On due dates (Investors are requested to refer to the instrument for ascertaining the due date)

Redemption payment of securities

On maturity dates as pre-determined and notified in the Offer Document.

Issue of Duplicate Bonds

Within 30 days of Job Description

receipt of request along with all relevant documents such as indemnity bond/surety and undertaking.

Postal loss of certificate(s)

Only after necessary notification regarding the loss/non-receipt of the original share certificate is given in the newspapers.

Issue of duplicate interest warrants/dividend warrants

Within 20 days after the expiry of the currency of the warrant and on receipt of relevant documents such as indemnity bond/surety, subject to receipt of reconciliation from Bankers.

Revalidation of interest warrants

On expiry of the validity period, subject to receipt of reconciliation from Banks.

Revalidation of dividend warrants

On expiry of the validity period, subject to receipt of reconciliation from Banks.

Change of address

Immediately on receipt of information

Change in Bank Mandate

Immediately on receipt of information

Request for transmission of securities in case of death of single holder

Transmission will be effected within 30 days after receipt of securities along with all relevant documents such as attested copy of the will, attested copy of the death certificate, attested copy of court order/succession certificate /Letter of administration for effecting the transmission.

Request for transmission of securities in case of death of one of the holders in a joint holding

Within 30 days of the receipt of original securities and an attested copy of the death certificate.

Request for transfer of share certificate

Within 30 days of lodgment of securities.

Request for consolidation of share certificates

Within 30 days of lodgment of securities.

Request for change in name consequent upon change in marital status

Within 30 days of receipt of original certificates along with attested copy of marriage certificate or decree of divorce issued by competent authority, old specimen signature and new specimen signature duly attested by the banker.

Community Involvement

TFCI strives to be a trusted corporate citizen and, as an integral part of society, to fulfill its responsibilities to the societies and communities in which it operates.