Oil PSUs Back Energy Deeptech With New Funding Push

Oil and gas public sector undertakings (PSUs) are setting up a new platform to support energy deeptech startups at different stages. The platform is expected to provide ₹70-80 crore in its first year. A separate ₹2,000 crore fund is also being planned for growth-stage companies.

The initiative will bring together funding, industry infrastructure and technical expertise to support new energy technologies.

The platform has also launched the MC²+Ignite accelerator with IIT Madras. It will select around 30 startups working at the prototype or early-pilot stage.

Energy Deeptech Platform Targets Multiple Technology Areas

The accelerator will focus primarily on the oil and gas sector, with startups being evaluated across several technology areas.

These include:

• Artificial intelligence (AI)-led subsurface intelligence

• Drilling technologies

• Hydrogen

• Mobility

• Bioenergy

• Refinery processes

• Digital asset management

The programme is designed to work with startups before they reach wider commercial deployment.

Oil PSUs Join Forces To Support Deeptech Startups

The MC² Foundation, which has been registered as a not-for-profit organisation, is behind the platform. Its participating energy companies include ONGC, Indian Oil, BPCL, HPCL, GAIL, and Oil India, among other public sector energy firms.

This industry-backed approach gives oil and gas startups access to potential testing environments and sector-specific expertise. It also links early-stage technology development with the operational requirements of established energy companies.

How Will Startups Be Funded Under The Programme?

Startups selected for the programme can receive up to ₹50 lakh in milestone-linked convertible funding. Some companies may also receive an additional ₹1.5 crore, depending on their outcomes during the programme.

The foundation will focus on technologies at product readiness levels 4-7. This is the stage where a technology moves from research towards prototype testing in real-world or simulated operating environments.

The foundation believes this is a funding gap for many Indian energy startups. At this stage, grant funding may have been exhausted, while access to operating assets for customer discovery can remain limited.

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