Stories
Union Cabinet Approves Rs 10000 Crore SME Growth Fund and ITLA
- •The Union Cabinet chaired by Prime Minister Narendra Modi approved a government contribution of Rs 10000 crore to the SME Growth Fund and the establishment of ITLA.
- •Direct equity investments will be made in small and medium enterprises under the SME Growth Fund to address the shortage of growth-stage capital.
- •The fund will primarily focus on enterprises in the small and medium manufacturing sector as well as industrial clusters in tier-2 and tier-3 cities.
- •The Integrated Transport and Logistics Authority will be established as a Special Purpose Vehicle to act as the apex body for integrated transport planning and research.
- •ITLA will prepare a comprehensive National Transport Master Plan with a planning horizon of 10 years or more covering roads, railways, ports, civil aviation and urban transport.
Key Questions Answered
The Union Cabinet approved a government contribution of Rs 10,000 crore to establish the SME Growth Fund (SGF) to address the shortage of growth-stage equity capital for high-potential small and medium enterprises. This fund aims to provide direct equity investments to help industries expand production, enhance technology, enter international markets, and make strategic investments.
Most of the funds in the SME Growth Fund will be utilized for enterprises focusing on the small and medium manufacturing sector. Additionally, small and medium enterprises operating in industrial clusters across tier-2 and tier-3 cities will also be considered for this funding.
The Integrated Transport & Logistics Authority (ITLA) was approved to strengthen research, planning, project appraisal, monitoring, and outcome evaluation in the transport and logistics sector. Established as a Special Purpose Vehicle, ITLA will prepare a comprehensive National Transport Master Plan, evaluate short-term and annual transport plans, and conduct technical appraisals for infrastructure projects costing Rs 500 crore or more.
