Hotel financing major Tourism Finance Corporation (TFCI) is planning to venture into infrastructure project financing business in a big way. It has already secured mandatory approval of its board of directors and shareholders.
“By venturing into financing of infrastructure sector, especially power, ports, airports, road and bridges, we expect to give a fillip to tourism and hospitality projects,” TFCI chairman & managing director Archana Capoor said. ?We will go through consortium route,? she added.
TFCI provides long-term funding?usually for 10-12 years?unlike banks which provide term loans for 5-7 years only. So it is in a better position to meet funding requirement of power projects which have a relatively long payback period.
The government has targeted investment of $1 trillion in the infrastructure sector during the 12th Plan which means huge business opportunities for infrastructure project financing companies.
TFCI, which is credited with financing every fifth approved category hotel room in the country, is especially bullish on the power sector. “Initially, we are looking at financing power projects,” Capoor told FE. TFCI is very keen on financing green power projects like those based on solar energy.
“We will explore if our hotel sector customers, especially those in states like Rajasthan can partly meet their electricity requirements from solar energy,” TFCI chief said.