Cabinet to Weigh ₹10,000 Crore Small Business Fund and New Logistics Body

UPDATE - follow-up to Union Cabinet to take up ₹10,000 crore SME Growth Fund, centralised infra authority: The Union Cabinet on Tuesday is likely to review a Ministry of Finance proposal to establish a ₹10,000 crore SME Growth Fund alongside a Ministry of Commerce proposal for an Integrated Transport and Logistics Authority.

What Is Planned

A Cabinet Secretariat note states that the SME Growth Fund will provide direct equity investments to small and medium enterprises to help them grow into major market players. First announced in the Union Budget 2026 by Finance Minister Nirmala Sitharaman, the fund forms part of a three-part government strategy offering equity support, liquidity measures, and professional help for small businesses. Meanwhile, the proposed Integrated Transport and Logistics Authority will handle research, planning, appraisal, monitoring, and impact assessment for transport and logistics.

Structure And Scope

Government sources indicate the logistics authority will operate as a non-profit special purpose vehicle under the Companies Act 2013, with a tentative name of Gati-Shakti Transport and Logistics Planning and Research Authority. The Union Government will own this body under the administrative control of the Cabinet Secretariat to coordinate work 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.

Context

These proposals aim to bridge gaps between different government ministries to make infrastructure planning smoother and faster. Such central bodies help various departments work together on large transport projects rather than operating in separate groups.