- ONGC has launched a ₹2,000 crore (roughly $228 million) alternative investment fund for deeptech energy startups, chairman and CEO Arun Kumar Singh announced Tuesday at IIT Bombay.
- The fund is structured under a tripartite memorandum of understanding signed with MC²⁺ Foundation, IIT Bombay, and SINE.
- In the first phase, up to 30 startups will each receive up to ₹50 lakh in convertible funding, with an additional ₹1.5 crore available in milestone-based funding, separate from the ₹2,000 crore corpus.
- Applications for the first phase close September 15, with over 700 registrations already received.
- MC² Ignite was formally launched at IIT Madras on August 19, 2026, by Dr. Neeraj Mittal, Secretary, Ministry of Petroleum & Natural Gas.
- Pune City Connect was held on September 3 as part of the accelerator's nationwide outreach programme.
ONGC has launched a ₹2,000 crore ($228 million) fund aimed at fostering deeptech energy startups, in collaboration with IIT Bombay and its incubator. This initiative, announced by CEO Arun Kumar Singh, is designed to support up to 30 startups with financial backing of up to ₹2 crore each.123
The fund, structured to avoid "excessive pains of governance,” will provide ₹50 lakh in convertible funding and an additional ₹1.5 crore in milestone-based funding for each selected startup. Applications for the program close on September 15, with over 700 registrations already received.4
Singh highlighted that only 2% of the national startup ecosystem funding reaches the energy sector, with a mere 0.15% allocated to oil and gas. He emphasized the importance of market access for startups, stating, "The market is the main bloodline for startups."
The initiative targets seven key areas, including AI-driven subsurface intelligence, next-generation drilling, and hydrogen mobility. Singh also pointed out the significance of deepwater exploration, where costs can range from ₹600-1,500 crore per well, and noted the government's commitment of ₹84,000 crore to this sector.
ONGC has previously invested ₹88 crore across 326 startups and has approval for an additional ₹400 crore in R&D spending, indicating a strong commitment to innovation in the energy sector.
“The fund is structured to bypass 'excessive pains of governance,' as Singh put it, and targets seven fields including AI-driven subsurface intelligence and hydrogen. Only 2% of national startup funding reaches the energy sector, with just 0.15% for oil and gas, highlighting the gap the initiative aims to fill.”
