Government Approves Rs 10,000 Crore SME Fund and Establishes New Transport Authority
The Union Cabinet, led by Prime Minister Narendra Modi, approved several key initiatives on Tuesday, including a substantial Rs 10,000 crore fund to support small and medium enterprises (SMEs) and the establishment of an Integrated Transport & Logistics Authority (ITLA). These measures aim to bolster the SME sector and enhance transport and logistics planning in India. Additionally, the Cabinet passed a resolution recognizing PM Modi’s 25 years of continuous leadership in government.
Rs 10,000 crore SME Growth Fund
The Cabinet’s commitment of Rs 10,000 crore will establish the SME Growth Fund, designed to provide equity capital to growth-oriented small and medium enterprises. This fund will be structured as an Alternative Investment Fund (AIF) and aims to fill the gap in long-term risk capital for SMEs beyond their initial stages. A significant portion of the fund will focus on small and medium manufacturing enterprises, particularly those in Tier-II and Tier-III cities.
The government stated that the fund will assist SMEs in expanding their capacity, adopting advanced technologies, entering international markets, and integrating into global value chains. This initiative is part of the measures outlined in the Union Budget 2026-27 to enhance the MSME ecosystem through improved equity, liquidity, and professional support.
Integrated Transport & Logistics Authority
The Cabinet approved the creation of the Integrated Transport & Logistics Authority (ITLA) as a Special Purpose Vehicle. ITLA will serve as the national apex institution for integrated transport planning, focusing on project appraisal, monitoring, and impact assessment across various transport and logistics sectors. The authority will develop a National Transport Master Plan with a long-term horizon, covering roads, railways, ports, civil aviation, and urban mobility.
ITLA will also evaluate sectoral and annual transport plans to ensure alignment with the master plan and promote multimodal infrastructure development. It will conduct technical appraisals of central government infrastructure projects costing Rs 500 crore or more, while financial appraisals will continue under existing mechanisms. Additionally, ITLA will create a National Transport Data Repository by integrating various datasets to support freight-flow and origin-destination analysis.
Cabinet resolution marks PM Modi’s 25 years in government
The Cabinet passed a resolution congratulating Prime Minister Narendra Modi on his 25 years of continuous leadership as head of government. The resolution acknowledged his tenure as Gujarat chief minister and his subsequent national leadership, connecting initiatives like SWAGAT and Jyotigram in Gujarat to national programs such as PRAGATI.
It highlighted various welfare measures, including Jan Dhan accounts and housing programs, as well as significant reforms like GST and the overhaul of colonial-era criminal laws. The resolution also noted increased public capital expenditure, growth in electronics and defense production, and advancements in India’s space program and domestic vaccine development. It referenced key national security actions, including the 2016 surgical strikes and the removal of Article 370, while emphasizing India’s role in international forums like G20 and BRICS.
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