Oil and Natural Gas Corporation (ONGC) announced a ₹2,000-crore alternative investment fund for deeptech energy startups on 8 September 2026 at an industry event at IIT Bombay. A tripartite Memorandum of Understanding was signed among the MC²⁺ Foundation, IIT Bombay, and the Society for Innovation & Entrepreneurship (SINE) to connect startups with research facilities, laboratories, mentors, and pilot projects.
Alternative Investment Fund in Energy Start-ups
An alternative investment fund (AIF) is a privately pooled investment vehicle regulated in India under the Securities and Exchange Board of India framework. The ₹2,000-crore fund will operate under Petronet LNG and will bring together ONGC, Hindustan Petroleum Corporation Limited, Indian Oil Corporation, Bharat Petroleum Corporation Limited, GAIL, and Oil India under a single mandate.
MC²⁺ Ignite Accelerator Programme
The MC²⁺ Ignite accelerator programme will support up to 30 early-stage startups. Each selected startup can receive up to ₹50 lakh in convertible funding and up to ₹1.5 crore in milestone-based funding, with total support of up to ₹2 crore per startup.
Focus Areas in Energy Innovation
The collaboration covers seven focus areas in the energy sector. These areas are AI-driven subsurface intelligence, next-generation drilling, hydrogen and mobility, bioenergy, refinery process intensification, digital asset management, and other energy transition technologies.
Important Facts for Exams
- ONGC is a Maharatna public sector undertaking under the Ministry of Petroleum and Natural Gas.
- IIT Bombay was established in 1958 and is one of the Indian Institutes of Technology.
- SINE is the technology business incubator of IIT Bombay.
- Petronet LNG is a joint venture company in India’s natural gas sector.
Energy Sector Context
India imports about 88% of its crude oil requirement. The startup ecosystem in India has committed investment of ₹5.45 lakh crore, and the energy sector has received 2% of that amount.
