Mumbai: ONGC Chairman and CEO Arun Kumar Singh has announced a ₹2,000-crore Alternative Investment Fund (AIF) to support deeptech energy start-ups and accelerate technology-led innovation in India’s energy sector.
The announcement was made at IIT Bombay as ONGC signed a tripartite Memorandum of Understanding (MoU) with MC²⁺ Foundation, IIT Bombay and the Society for Innovation and Entrepreneurship (SINE), the start-up incubator of IIT Bombay.
The initiative aims to bring major public-sector energy companies under a common framework to support technology-driven start-ups and create stronger pathways for innovation, industry collaboration and commercial deployment.
₹2,000 Crore Fund to Support Energy Start-Ups
The proposed fund will operate under Petronet LNG and bring major public-sector energy companies under a common mandate.
The participating companies include:
- ONGC
- Hindustan Petroleum Corporation Limited (HPCL)
- Indian Oil Corporation Limited (IOCL)
- Bharat Petroleum Corporation Limited (BPCL)
- GAIL
- Oil India
- Petronet LNG
According to Singh, the common framework is expected to streamline collaboration among public-sector energy companies and reduce governance-related challenges involved in coordinating start-up support.
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First Phase to Provide Funding to 30 Start-Ups
The first phase of the programme is expected to provide financial support to up to 30 start-ups.
The funding structure includes:
- Up to ₹50 lakh in convertible funding for each selected start-up
- Additional funding of up to ₹1.5 crore, linked to achievement of defined milestones
The programme is designed to provide capital while also connecting promising deeptech companies with major energy-sector organisations.
Seven Key Areas of Energy Innovation
The initiative will focus on technologies capable of addressing major challenges across the oil, gas and wider energy sectors.
The seven identified focus areas are:
- Artificial intelligence for subsurface intelligence
- Next-generation drilling and well-completion technologies
- Hydrogen and mobility
- Bioenergy, including compressed biogas (CBG)
- Refinery process intensification and catalysis
- Digital asset management
- Energy-transition technologies
The focus areas cover technologies across exploration, production, refining, clean energy and digitalisation.
Energy Start-Ups Face Funding and Market Access Gaps
Singh highlighted the relatively small share of start-up funding currently reaching the energy sector.
According to the figures cited by him, only around 2% of the approximately ₹5.45 lakh crore committed to India’s start-up ecosystem reaches the energy sector, while the oil and gas segment receives only around 0.15%.
ONGC’s Bharat Innovate initiative has already interacted with around 500 deeptech start-ups.
Singh noted that nearly 90% of these start-ups identified market access, rather than funding, as their primary requirement.
The new initiative therefore aims to go beyond financing by creating opportunities for start-ups to work directly with major energy companies and move their technologies towards commercial deployment.
Deepwater Exploration Identified as Key Technology Area
Deepwater exploration has emerged as another important area where advanced technology could create significant value.
Singh highlighted that drilling a single deepwater well can cost between ₹600 crore and ₹1,500 crore.
Technologies that can improve exploration efficiency, reduce costs and manage operational risks could therefore have substantial commercial potential.
According to the report, the government has separately committed ₹84,000 crore towards deepwater exploration, further highlighting the importance of technological innovation in this area.
ONGC and IIT Bombay Strengthen Industry-Academia Collaboration
The tripartite MoU is expected to strengthen collaboration between academia, start-ups and public-sector energy companies.
The MoU was formally exchanged by Ratnesh Kumar, Executive Director and Chief Corporate Strategy, ONGC, and Shrikrishna Kulkarni, Dean of Research and Development, IIT Bombay.
IIT Bombay Director Shireesh Kedare and SINE head Nishant Sharma also addressed the gathering.
The partnership is aimed at supporting emerging technologies and facilitating their transition from research and development to practical commercial applications.
Focus Shifts from Funding to Market Access
The ₹2,000-crore fund represents a significant step towards strengthening India’s energy innovation ecosystem.
While financial assistance will remain an important component, the initiative places strong emphasis on market access, industry collaboration and commercial deployment.
By connecting deeptech start-ups with major energy companies, the programme could help promising technologies move beyond development and into real-world applications across India’s evolving energy landscape.
About ONGC
Oil and Natural Gas Corporation Limited (ONGC) is India’s leading oil and gas exploration and production company and a Maharatna public sector enterprise. The company is engaged in exploration, development and production of crude oil and natural gas and is also expanding its focus on new and emerging energy technologies to support India’s energy transition.
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