The SME Growth Fund is part of a three-pronged effort by the government to help small companies grow, involving equity support, liquidity measures, and professional support.
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The Union Cabinet on Tuesday (October 6, 2026) is likely to take up a proposal by the Ministry of Finance to set up a ₹10,000 crore SME Growth Fund, and a Ministry of Commerce proposal for the setting up of an Integrated Transport and Logistics Authority (ITLA), The Hindu has learnt.
According to a note sent out by the Cabinet Secretariat and reviewed by The Hindu, the SME Growth Fund will be “for direct equity investments in Small and Medium Enterprises (SMEs) to create future champions”.
The Fund was first mentioned in Union Budget 2026, when Finance Minister Nirmala Sitharaman had spoken about it as a means to incentivise enterprises based on select criteria.
The SME Growth Fund is part of a three-pronged effort by the government to help small companies grow, involving equity support, liquidity measures, and professional support.
The Union Cabinet will also take up the Commerce Ministry proposal for the “setting up of Integrated Transport and Logistics Authority (ITLA) to strengthen research, planning, appraisal, monitoring and evaluation (impact assessment) within the broad domains of transportation and logistics”, the Cabinet note said.
According to sources in the government, the ITLA will be set up as a non-profit special purpose vehicle under the Companies Act 2013, and is tentatively named the Gati-Shakti Transport and Logistics Planning and Research Authority.
This body will be owned by the Union Government and will function under the administrative control of the Cabinet Secretariat. The primary aim of the body is to centralise and systematise infrastructure planning and implementation and remove silos between Ministries.
The idea is for it to focus on research, planning, appraisal, monitoring and impact assessment across the transport and logistics ecosystem. The body is expected to coordinate across the Ministry of Road Transport and Highways, Ministry of Ports, Shipping and Waterways, Ministry of Railways, Ministry of Civil Aviation, and the Ministry of Housing and Urban Affairs.
Published – October 06, 2026 10:30 am IST
