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Question
High Order Thinking Skills
Hari is an entrepreneur who wants to start an amusement park in Indore. He knows that she needs a huge amount of initial capital. According to you, which of the financial institution will be more suitable to him? Suggest and Explain why?
Solution
Accordingly Hari should approach to Tourism Finance Corporation of India (TFCI), the financial institution.
TFCI is playing vital role in the development of entrepreneurship in modern economy. The Tourism Finance Corporation of India (TFCI) was born as a result of the Government of India’s decision, in 1987, to promote a separate all-India financial institution for providing financial assistance to tourism-related activities/projects.It was incorporated as a public limited company under the Companies Act, 1956 on 27 January, 1989.It became operational with effect from 1 February, 1989. It is a specialized all- India development financial institution to cater to the needs of the tourism industry.
The various functions:
- It provides financial assistance to enterprises for setting up or the development of tourism- related projects, facilities and services such as hotels, restaurants, holiday resorts, amusement parks, entertainment centres, education and sports, rope ways, cultural centres, convention halls, transport, travel and tour operating agencies, air services, tourism emporia and sports facilities.
- It provides advisory and merchant banking services in this field.
- The projects with a capital cost of? 1 crore or above are generally eligible for assistance from TFCI. Smaller projects would also be considered.
Values:
- Providing employment opportunities
- Cater to the financial needs of the tourism industry.
- To protect national property.
- Awareness of responsibility of citizenship
- Initiative
- Proper utilization of time and resources.
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