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ByNN Desk
ONGC to Launch ₹200 Crore AIF for Energy, AI Startups
The proposed alternative investment fund would double ONGC venture capital commitment and expand its mandate to include artificial intelligence.
The proposed alternative investment fund would double ONGC venture capital commitment and expand its mandate to include artificial intelligence.
Oil and Natural Gas Corporation (ONGC) plans to launch a Rs 200 crore alternative investment fund targeting startups in the energy sector and artificial intelligence, the state-run oil producer said, as India’s public sector companies increase direct bets on early-stage technology ventures.
The new fund would double ONGC’s existing venture capital commitment. The company’s first startup fund, launched on August 14, 2016, carried a corpus of Rs 101 crore Rs 100 crore from ONGC and Rs 1 crore from subsidiary Mangalore Refinery and Petrochemicals Limited and was registered with the Securities and Exchange Board of India as a Category-I Alternative Investment Fund on March 19, 2019.
Of that existing corpus, nearly Rs 88 crore has been invested or committed to portfolio companies. Past investments include a Rs 2 crore stake in Chakr Innovation, a Delhi-based cleantech company that captures soot from diesel generators and converts it into ink.
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To operationalize the new fund, ONGC has begun recruiting two advisors on a contractual basis. The roles carry an initial term of 12 months, with an option to extend by another year. Advisors will be responsible for evaluating startups, conducting due diligence, negotiating valuations, monitoring portfolio firms, and advising on exits, per the company’s official notice.
Candidates must hold a degree in engineering or finance, have at least 20 years of professional experience, and have at least 5 years of experience in venture capital fund management. The age ceiling is 63 years. Monthly compensation includes an honorarium of Rs 94,000, along with reimbursements for conveyance and home office.
The fund expansion comes as several Indian public sector undertakings, including IN-SPACe, SAIL, and BPCL, have moved to establish or scale startup programs targeting energy transition, manufacturing, and AI-led industrial technology.
India’s cleantech sector is projected to represent a $41 billion opportunity by 2040, according to industry estimates cited by ONGC in its fund communications.
Whether the new fund will operate as a separate SEBI-registered AIF or as an extension of the existing trust structure is still unclear. ONGC has not disclosed a timeline for final regulatory registration or a first close date for the proposed Rs 200 crore vehicle.
Disclaimer: This news is based on publicly available information. NervNow has not independently verified any claims.
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