The Union Cabinet, chaired by Prime Minister Narendra Modi, on October 6 approved the Government of India's commitment of ₹10,000 crore towards establishing the SME Growth Fund.
The fund will provide patient equity capital to high-potential Small and Medium Enterprises (SMEs) with demonstrated business viability and scalability. It is aimed at supporting enterprises across manufacturing, services, technology, innovation-driven sectors and strategic value chains.
Editorial Insight
Key Highlights
Important points readers should notice.
₹10,000-crore Government of India commitment towards the SME Growth Fund.
The fund will provide equity capital to high-potential SMEs.
Majority allocation will focus on small and medium manufacturing enterprises.
SMEs in industrial clusters in Tier-II and Tier-III cities will also be considered.
Cabinet approved ITLA as a Special Purpose Vehicle.
ITLA will prepare a long-term National Transport Master Plan.
A majority of the fund's allocation will be directed towards small and medium manufacturing-focused enterprises. The fund will also consider SMEs operating in industrial clusters in Tier-II and Tier-III cities.
The Cabinet also approved the setting up of the Integrated Transport & Logistics Authority (ITLA) as a Special Purpose Vehicle. ITLA will function as an apex institutional mechanism for integrated transport and logistics planning, research, project appraisal, monitoring and impact assessment.
ITLA will prepare a comprehensive National Transport Master Plan with a planning horizon of 10 years or more, covering roads, railways, ports and shipping, civil aviation, inland waterways, coastal shipping, urban mobility and logistics.
Editorial Analysis
Why This Matters
The SME Growth Fund is intended to address the availability of growth-stage equity capital for small and medium enterprises, while ITLA is designed to improve coordination and integrated planning across India's transport and logistics sectors.
It will undertake technical appraisal of Government of India infrastructure projects costing ₹500 crore or more and monitor transport and infrastructure projects above ₹500 crore. ITLA will also develop a National Transport Data Repository by integrating relevant transport and logistics datasets.
