ONGC Chairman and CEO Arun Kumar Singh announced a ₹2,000-crore alternative investment fund (AIF) for deeptech energy start-ups at IIT Bombay. The announcement came as ONGC signed a tripartite memorandum of understanding (MoU) with MC²⁺ Foundation, IIT Bombay and the Society for Innovation and Entrepreneurship (SINE), IIT Bombay’s start-up incubator. The initiative aims to bring major public-sector energy companies under a common framework to support technology-driven start-ups and accelerate innovation across the energy sector.
Fund to Support Energy-Sector Start-Ups
The fund will operate under Petronet LNG and bring ONGC, HPCL, Indian Oil, BPCL, GAIL, Oil India and Petronet LNG under a common mandate. According to Singh, the structure will help streamline collaboration among public-sector energy companies and reduce governance-related challenges in coordinating start-up support. Meanwhile, the programme’s first phase will provide financial assistance to up to 30 start-ups. Up to ₹50 lakh in convertible funding for each selected start-up . Additional funding of up to ₹1.5 crore based on milestones.
Seven Key Areas of Energy Innovation
The initiative will focus on technologies that can address major challenges across the oil, gas and wider energy sectors.
The seven focus areas include:
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
Consequently, the programme is expected to create opportunities for deeptech start-ups working across exploration, production, refining, clean energy and digitalisation.
Energy Sector Receives Small Share of Start-Up Funding
Singh highlighted the funding gap faced by energy-focused start-ups. He said only around 2% of the approximately ₹5.45-lakh crore committed to India’s start-up ecosystem reaches the energy sector, while oil and gas receives only about 0.15%. Furthermore, ONGC’s Bharat Innovate initiative has 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. Therefore, the new initiative aims not only to provide capital but also to create stronger pathways for start-ups to work with major energy companies.
Deepwater Exploration Emerges as a Priority
Deepwater exploration has been identified as another important area for technology development. Singh pointed out that drilling a single deepwater well can cost between ₹600 crore and ₹1,500 crore. Advanced technologies that can improve exploration efficiency, reduce costs and manage operational risks could therefore have significant commercial value. The government has also separately committed ₹84,000 crore to deepwater exploration, according to the report.
MoU Strengthens IIT Bombay–Industry Collaboration
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 expected to strengthen collaboration between academia, start-ups and public-sector energy companies while supporting the commercialisation of emerging technologies.
Focus Shifts from Funding to Market Access
The ₹2,000-crore fund marks a significant step towards strengthening India’s energy innovation ecosystem. More importantly, its focus on deeptech, market access and collaboration with major energy companies could help promising technologies move from development to commercial deployment. As reported by urbanacres.in, by combining funding, industry access and institutional support, ONGC and its partners aim to accelerate the adoption of next-generation technologies across India’s evolving energy landscape.
