Cabinet approves a ₹10,000 crore growth fund for small firms and a new authority to plan India’s transport

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday, 6 October, approved two decisions aimed at businesses: a ₹10,000 crore government commitment to an SME Growth Fund, and a new body to plan India’s transport networks together.

₹10,000 crore for growing small firms

The SME Growth Fund will make direct equity investments in small and medium enterprises that have shown they are viable and can expand. The government’s ₹10,000 crore will go into an Alternative Investment Fund set up under the scheme.

Most of the money will go to small and medium manufacturers, and businesses in industrial clusters in Tier-II and Tier-III cities will also be considered. The capital is meant to help firms expand, invest in technology and manufacturing capacity, and enter export markets. According to the government, existing equity schemes mostly serve early-stage and micro businesses, leaving a gap in growth capital for small and medium companies.

One authority for roads, rail, ports and air

The Cabinet also approved the Integrated Transport & Logistics Authority (ITLA), a special purpose vehicle meant to fix fragmented planning across transport ministries. It will:

• prepare a National Transport Master Plan with a horizon of 10 years or more, covering roads, railways, ports and shipping, civil aviation, inland waterways, coastal shipping, urban mobility and logistics;
• carry out technical appraisal of central government infrastructure projects costing ₹500 crore or more, and monitor and assess them after completion;
• build a National Transport Data Repository drawing on sources such as GST e-way bills, FASTag and Vahan; and
• advise on updating the National Logistics Policy (2022).

Why it matters

Small manufacturers often struggle to raise money once they outgrow early-stage support, and poor coordination between transport modes adds to logistics costs. The government says ITLA will help cut those costs and strengthen multimodal connectivity.

Sources: Prime Minister’s Office, Free Press Journal.