Rs.180 Crore Start-up funds in the Energy sector so far...!

Rs.180 Crore Start-up funds in the Energy sector so far...!

Posted by Vivek Nama on November 10th 2016

In alignment with PM Narendra Modi’s Make in India initiative to promote start-ups in all sectors & industries, the Minister of State for Petroleum and Natural Gas Mr. Dharmendra Pradhan in September urged PSUs in the energy sector to create start-up funds to promote innovation and nurture new ideas in this area.
 
Taking heed to this call seven PSU’s had planned to invest and provide financial partnerships to new start-ups engaged in exploration and production of oil & natural gas & foster, nurture and incubate new ideas related to the energy sector.
 
The PSUs included ONGC Ltd., Oil India Ltd, Indian Oil Corp. Ltd., Bharat Petroleum Corp. Ltd. Hindustan Petroleum Corp. Ltd., Gail India Ltd. & Engineers India Ltd. who have come together & planned to launch a Rs.100 crore start-up fund as part of this initiative. This funding process would be set up under the aegis of the Ministry of Petroleum & Natural Gas.
 
As part of this deal three PSUs have already pitched in funds, the first being Oil & Natural Gas Corporation Ltd. which   unveiled the largest funding of Rs.100 crore start-up fund called ONGC Start-up in August 2016.
 
ONGC Start-up  fund  initiative will provide the entire support chain for start-ups including seed capital, hand-holding, mentoring, market linkage and follow-up and has already set up a dedicated website http://startup.ongc.co.in/wps/wcm/jsp/ongc-startup/ for this.
 
In October India’ largest fuel supplier Indian Oil Corporation (IOC) launched a start-up fund of Rs. 30 crore to promote promising start-ups and nurture an eco-system conducive for innovations in the domestic hydrocarbons sector.
 
Indian Oil's Research and Development Centre based at Faridabad will support projects that aim to establish innovative technology and business process re-engineering ideas with significant business potential, social relevance and focused on environment protection.
 
Who can apply:Citizens of Indian origin willing to work in India besides individuals affiliated to academic institutions having incubation centres approved by the Central Government can apply under the scheme.
 
Process:

To begin with, Indian Oil will float the first round of open Innovation Challenge by way of an Expression of Interest (EoI) to select 9 proposals in the domain of Technology Process Re-engineering (TPRE) and 6 proposals in the domain of Business Process Re-engineering (BPRE).
 
The project owners shall be supported with grants of up to Rs. 2 crore per project during this period.
 
The PSUs are planning to target engineering and petroleum institutes including the IITs & NITs to fund start-ups where they say they would be able to find technology and innovation relevant to the energy sector.
 
The start-ups would be selected on the basis of relevance, innovative solutions in matters of refinery, new technologies in pipeline transportation, LPG etc.
 
The start-up scheme will be administered through a dedicated online portal which is yet to go online. You can dial 0129 2287256 for further information.
 
In November Oil India Limited set up a Rs. 50 crore start-up fund to encourage entrepreneurs especially in North Eastern regions of India.  The main objectives of the start-up fund are to:
 
· Develop new innovative solutions, technologies and products through Start-ups, for solving business problems 
 
· Develop Start-ups as an important channel for OIL for expanding into new related business sectors 
 
· Create an entrepreneurial mindset and fresh thinking amongst employees and stakeholders, by working with Start-ups, for revitalising corporate culture
 
Oil India Limited will be partnering with institutes in the Northeast like IIT-Guwahati where the institutes will facilitate ‘idea incubation’ for carrying out research and experiments related to renewable energy.
 
The company has dedicated a page in their website http://oil-india.com/oilnew/StartUpOIL.aspx?CatID= to enable students & entrepreneurs to post their ideas. These applications will be evaluated and examined by a screening committee comprising of experts from within & outside Oil India Limited and based on their application the company would get in touch with them for further discussions.
 
The remaining  PSUs are yet to come out with their funding initiatives and once those details are out we will have a comprehensive list of the entire funding which aim  to foster, nurture and incubate new ideas related to oil and gas sector specifically.

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