New Delhi. The Central Government on Tuesday approved two important proposals related to transport system and small-medium businesses. Union Minister Ashwini Vaishnav informed about these decisions after the cabinet meeting chaired by Prime Minister Narendra Modi. According to the government, both the initiatives can help in increasing business in the country, improving infrastructure and creating future employment opportunities.
Growth fund of Rs 10 thousand crore for SMEs
The Cabinet has given green signal to create SME Growth Fund (SGF). Under this, arrangements will be made to provide capital through equity to small and medium enterprises. An investment of Rs 10,000 crore is proposed for this scheme.
The special emphasis of this fund will be on manufacturing related enterprises. Providing capital to companies that have the potential to expand further will help them scale up production, adopt new technology and access larger markets.
The government hopes that this will strengthen the domestic supply chain and increase the capacity of Indian companies to export. Along with this, there is also a possibility of new employment being created in different sectors. This initiative is being linked to the goal of developed India by 2047.
ITLA for Transport and Logistics
The second major decision is regarding the formation of Integrated Transport and Logistics Authority (ITLA). This institution will play an important role in making long-term plans by connecting different transportation systems of the country together.
The scope of ITLA will include sectors such as roads, railways, ports, shipping, air traffic, inland waterways, coastal transport and urban mobility. The authority will also assess and monitor projects, assist in policy making and analyze data.
Apart from this, the responsibility of promoting skill development, training and capacity building in the logistics sector is also proposed. The aim of the integrated plan is to create better coordination between different transport modes and make the logistics system more effective.