Oil firms of the state will be investing in new startups that could help oil industry. Indian Oil, ONGC, HPCL and a number of other reputed oil firms made a preliminary agreement with some promising, IIT-affiliated startups. According to the deal, ₹44 crore will be invested in 32 startups. The move will help oil firms collaborate with new startup establishments.
Each startup will receive a fund ranging from ₹40 lakh to 2.5 crore. The primary aim of the move is to encourage India’s startup atmosphere and the oil firms will not acquire stakes in any of the fund recipients.
“The aim is just to support startups and their innovations,” said Sanjiv Singh, Chairman, Indian Oil. The startups that are included in the deal have been working to find solutions to different problems faced by oil industry of the country. “This funding will be helpful for them to come up with innovative solutions that could help the industry grow in future,” added Singh.
This is the first round of funding from oil firms of the state. According to Oil minister Dharmendra Pradhan, the funding will be carried out every year to encourage new entrepreneurs. “Applications will be invited on a regular basis from next year to provide funding,” added Pradhan.
The oil firms of the state are planning to expand the figures and they will spend ₹ 300 crore annually to support startups from next year.