Union Minister Hardeep Singh Puri said that Oil Marketing Companies (OMCs) are likely to raise their start-up fund to Rs 2,000 crore, up from the current Rs 547.35 crore
Oil marketing companies (OMCs) are likely to raise start-up funds to Rs 2,000 crore, said Union Minister Hardeep Singh Puri at an event in New Delhi on Friday. Currently, PSUs under the Ministry of Petroleum and Natural Gas are fostering innovation through an Rs 547.35 crore start-up fund.
“Our OMCs had a combined start-up budget of over Rs 500 crore. During a brainstorming session, I asked them if the amount can be raised to Rs 2,000 crore. They agreed to do it. Last year, their profit after tax was Rs 1,59,000 crore. There is no shortage of funds,” Puri told Outlook Business.
His remarks came in response to a question about government initiatives amid rising investment in clean-tech. While the funding in the sector is growing, access to capital remains a major roadblock for many new ventures.
According to official data, climate tech companies raised a mere $50 billion in private and public equity in 2024, a 40% decline from 2023. It was the third consecutive year of contraction for the sector. Further, out of over 800 operational climate tech start-ups, only 25% have been able to secure venture capital funds.
However, Puri said there is no shortage of funds to support these start-ups. “In any sector, capital is not in short supply if you have a strong and bankable project. Funds will come from India, New York, or global venture capitalists. Money is chasing good projects. And if a project isn’t attracting investment, the problem may not be the availability of funds. It could be the project itself,” the minister said.
Initially, in 2017, around 10 PSUs under the oil ministry including Indian Oil and ONGC unveiled a Rs 320 crore fund to support start-ups in the oil and gas sector for a period of three years.