2 hrs ago
Cabinet Approves ₹10,000-Crore SME Fund and Transport Authority
The Cabinet approved two plans to help businesses and improve transport.
One plan sets aside ₹10,000 crore for a fund that will invest in small and medium businesses that are ready to grow.
The fund can support companies in several sectors, with much of its money aimed at manufacturing.
The other plan creates a new authority to help coordinate transport planning.
It will make a transport plan covering at least 10 years and look at roads, railways, ports, and other ways of moving people and goods.
It will also review and monitor large central infrastructure projects.
A transport data repository will bring together information from several sources.
The government hopes these steps will make transport links work better and lower the cost of moving goods.
An expert said the authority’s success will depend on how well ministries coordinate with it.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a ₹10,000-crore commitment to the SME Growth Fund and established the Integrated Transport and Logistics Authority (ITLA).
The SME Growth Fund will provide equity capital to viable, growth-stage small and medium enterprises through an Alternative Investment Fund.
The fund covers businesses across sectors, with a majority of its allocation intended for manufacturing; firms in Tier-II and Tier-III industrial clusters may also be considered.
ITLA will prepare a National Transport Master Plan spanning at least 10 years and coordinate transport planning across multiple modes.
ITLA will technically appraise central infrastructure projects costing ₹500 crore or more, monitor them, and conduct post-completion assessments; financial appraisal remains under existing mechanisms.
- Who
- The Union Cabinet, chaired by Prime Minister Narendra Modi; the Cabinet also approved the SME Growth Fund and ITLA.
- What
- Approved a ₹10,000-crore commitment to the SME Growth Fund and established ITLA as a special purpose vehicle.
- Where
- India.
- When
- Tuesday; the articles do not specify the date.
- Why
- To address growth-stage equity shortages for SMEs and improve coordination, efficiency and multimodal integration in transport planning.
Key facts
- SME Growth Fund commitment
- ₹10,000 crore
- Fund structure
- An Alternative Investment Fund providing growth-stage equity capital
- Fund focus
- A majority of allocation is intended for manufacturing; the fund also targets SMEs across other sectors
- Transport plan horizon
- At least 10 years
- Project appraisal threshold
- Central government infrastructure projects costing ₹500 crore or more; ITLA conducts technical appraisal
- Transport data
- The proposed National Transport Data Repository will draw on sources including GSTN e-way bills, FASTag, vehicle databases, GPS-based systems and urban traffic management systems
- Cabinet chair
- Prime Minister Narendra Modi
Quotes
Ashwini Vaishnaw
Union minister for information and broadcasting
“ITLA aims to address long-standing challenges arising from fragmented planning and implementation across various transport-related ministries and agencies. By fostering better coordination and multimodal integration through ITLA, it is expected to enhance the efficiency, sustainability, and effectiveness of transport infrastructure development in India.”
livemint.com
“This is a welcome and much-needed step. However, its success will ultimately depend on how effectively the plans, policies and implementation processes of individual ministries and departments are integrated with the new authority.”
livemint.com
Sources
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