Cabinet Approves ₹10,000 Crore SME Growth Fund, Integrated Transport & Logistics Authority To Boost Infra

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved the government's Rs 10,000 crore commitment to the SME Growth Fund (SGF) and the creation of an Integrated Transport & Logistics Authority (ITLA).

The SGF will make direct equity investments in small and medium enterprises (SMEs), addressing a shortage of growth-stage capital for businesses with demonstrated viability and potential to expand.

A majority of the fund's allocation will target small and medium manufacturing enterprises, while businesses operating in industrial clusters across Tier-II and Tier-III cities will also be considered.

SME Growth Fund to support manufacturing

The government will commit an aggregate Rs10,000 crore to the Alternative Investment Fund established under the SGF framework.

The capital is intended to help businesses expand operations, invest in technology and manufacturing capacity, enter international markets and integrate into global value chains.

According to the government, existing equity-support schemes largely focus on early-stage businesses and micro enterprises, leaving a structural gap in growth capital for small and medium companies. The SGF is designed to address this financing requirement.

ITLA to prepare National Transport Master Plan

The Cabinet also approved ITLA as a Special Purpose Vehicle to strengthen research, planning, appraisal, monitoring and impact assessment across India's transport and logistics sectors.

ITLA will serve as the apex body for integrated transport and logistics planning, project appraisal, policy support and data analytics.

It will prepare a National Transport Master Plan covering a period of 10 years or more. The plan will encompass roads, railways, ports, shipping, civil aviation, inland waterways, coastal shipping, urban mobility and logistics.

The authority will also conduct technical appraisals of Government of India infrastructure projects costing Rs500 crore or more, while existing mechanisms will continue to handle financial appraisal.

ITLA will monitor these projects and conduct post-implementation impact assessments.

It will also establish a National Transport Data Repository using information from sources including GSTN e-way bills, FASTag, Vahan, GPS-based systems and urban traffic management systems.

The government expects ITLA to strengthen multimodal connectivity, improve infrastructure efficiency and reduce logistics costs.