In keeping with the increased focus on infrastructure development in the country, the public sector Tourism Finance Corporation of India (TFCI) has decided to finance new projects in the sector.
Board members and shareholders of the company, which was set up to provide financial assistance to tourism related activities, recently gave their approval for the move.
It plans to build a Rs 3,000 crore book in the next five years, for which it also plans to approach India Infrastructure Finance Company Ltd (IIFCL).
“A gap in good infrastructure would have a negative impact on the tourism sector and therefore we are looking at financing projects linked to airports, roads and power as these are directly linked to the travel industry,” Archana Capoor, chairman and managing director, TFCI told Hindustan Times.
IFCI Ltd, holds 33 per cent stake in TFCI; 54 per cent stake is held by various public sector banks and the state-owned Life Insurance Corporation. Later this year, TFCI is set to raise capital via qualified institutional placement (QIP), but it is not ready for a follow on offer in the immediate future.