Oil and Natural Gas Corporation is backing a Rs 20 billion (bn) alternative investment fund to support energy startups under Petronet LNG. The fund will bring together ONGC, Hindustan Petroleum Corporation Limited, Indian Oil Corporation, Bharat Petroleum Corporation Limited, GAIL and Oil India under a single mandate. The vehicle will be regulated as an alternative investment fund under the Securities and Exchange Board of India framework and will focus on strategic investments in energy innovation.

The MC2+ Ignite accelerator programme will support up to 30 early-stage startups. Each selected startup can receive up to Rs five million (mn) in convertible funding and up to Rs 15 mn in milestone-based funding, with total support of up to Rs 20 mn per startup. The programme aims to nurture technologies from prototype to commercial demonstration.

The collaboration will concentrate on seven focus areas across the energy value chain including AI-driven subsurface intelligence, next-generation drilling, hydrogen and mobility, bioenergy, refinery process intensification and digital asset management. Emphasis will be placed on solutions that enable the energy transition while improving operational efficiency. The coordinated approach is intended to accelerate scale up and integration of novel solutions.

India imports about 88 per cent of its crude oil requirement and the development of domestic energy technologies is a strategic priority. The startup ecosystem in India has committed investment of Rs 5,450 bn and the energy sector has attracted two per cent of that total, underscoring a gap in sectoral funding. The fund seeks to address that shortfall by directing capital and technical support to early-stage companies.

The fund will be operated under Petronet LNG and leverage the corporate and technical capabilities of its sponsors to provide market access and validation pathways for investee companies. ONGC is a Maharatna public sector undertaking under the Ministry of Petroleum and Natural Gas and will participate alongside other major state energy firms to foster market ready innovation.