New Delhi: The Union Cabinet on Tuesday approved two major initiatives aimed at strengthening India’s infrastructure and supporting economic growth: the establishment of the Integrated Transport and Logistics Authority (ITLA) and a ₹10,000 crore Small and Medium Enterprises Growth Fund (SGF).
Announcing the decisions, Union Information and Broadcasting Minister Ashwini Vaishnaw said the initiatives would strengthen the country’s transport, logistics, and micro, small and medium enterprises (MSME) sectors.
The ITLA will serve as the national apex body for integrated transport and logistics planning. Its mandate will include research, planning, evaluation, monitoring and impact assessment, helping improve coordination in the planning and implementation of infrastructure projects.
The authority will bring together fragmented planning efforts across different modes of transport. It will undertake technical appraisals of major Government of India infrastructure projects costing ₹500 crore or more and advise on the implementation of the National Logistics Policy, 2022.
It will also develop a long-term integrated transport plan covering roads, railways, ports, aviation, inland waterways, urban mobility and logistics. A comprehensive National Transport Data Repository will draw on GSTN e-way bills, FASTag records, vehicle information, GPS data and urban traffic data to support evidence-based planning.
Using data and technical analysis, the ITLA will conduct detailed studies of freight movement and support skill development and capacity building in the logistics sector.
Meanwhile, the ₹10,000 crore Small and Medium Enterprises Growth Fund, announced in the Union Budget, will provide long-term equity capital to MSMEs with strong growth potential. It will focus on commercially viable enterprises capable of significantly expanding their operations.
The fund aims to address the shortage of growth capital available to small and medium enterprises, improve their global competitiveness and support the vision of a developed India by 2047.
A major share of the fund will be directed towards manufacturing MSMEs. It will also support enterprises in services, advanced technology, innovation-driven industries and strategic value chains, enabling them to contribute more effectively to the country’s economic development.
