The Indian Oil Startup Fund is an innovative initiative launched by the Indian Oil Corporation Limited (IOCL) to support promising startups and foster innovation in the domestic hydrocarbon sector. With a revolving corpus of ₹30 crore, this scheme aims to promote projects that involve cutting-edge technology and business process re-engineering ideas with significant business potential, social relevance, and a focus on environmental protection.
Objectives and Purpose
The primary objectives of the Indian Oil Startup Fund include:
- Supporting projects with innovative technology and business process re-engineering ideas
- Promoting collective research and developing a thriving startup ecosystem
- Validating Proof of Concept (PoC) for various technology and business ideas
- Enhancing intrapreneurship and technological innovation
- Providing financial support to projects offering innovative solutions in IOCL’s business domain
- Reducing ambiguity in existing technology and business processes
Key Focus Areas
The scheme focuses on funding projects in the following areas:
- Low-cost efficient vapor recovery systems at fuel stations
- Innovative re-refining of used lubricating oils
- Low-cost hydrogen production
- Low-cost seawater desalination
- Zero-effluent schemes for oil refineries
- LPG cylinder safety aspects
- Waste-to-energy projects
Eligibility Criteria
The Indian Oil Startup Fund is open to:
- Indian citizens, including Non-Resident Indians willing to work in India
- Individuals affiliated with academic institutions having government-approved incubation centers
- Entrepreneurs working for Indian Oil
Selection Process
The selection of projects involves a two-stage screening process:
- Level-1 Committee: Shortlists ideas based on set parameters and guidelines. Projects are evaluated out of 100 marks, with a cut-off of 70 marks to proceed to the next level.
- Level-2 Committee: Evaluates shortlisted projects through presentations and discussions. Projects are again scored out of 100 marks, with a cut-off of 60 marks for selection. A minimum of 50% is required in each evaluation category.
Funding Structure
The Indian Oil Startup Fund provides financial support as follows:
- A revolving corpus of ₹30 crore for each round of investment
- Funding period:
- 36 months for Technology Process Re-engineering (TPRE) projects
- 18 months for Business Process Re-engineering (BPRE) projects
- Funds are disbursed in installments based on achieved milestones
- No royalty is applicable on the funds provided
Incubation Support
Selected projects receive:
- Incubation support until the Proof of Concept stage
- Financial and mentorship support
- Intellectual and logistical support
- Technical assistance as required
Statistical Data
As of September 2022:
- Total committed startup fund by Oil PSUs: ₹320 crore for 3 years
- Selected startup projects: 167
- Committed funding: ₹195.30 crore
- Disbursed funding: ₹120.65 crore
Application Process
Interested applicants can apply through the official portal: www.indianoilstartupfund.in. The portal facilitates the entire process from application submission to project selection and management.
Intellectual Property Rights
The intellectual property rights for work done under the scheme are jointly owned by Indian Oil Corporation Limited and the entrepreneur/innovator.
Conclusion
The Indian Oil Startup Fund represents a significant step towards fostering innovation in India’s energy sector. By providing financial support, mentorship, and resources to promising startups, IOCL is not only driving technological advancements but also contributing to the country’s economic growth and job creation. As the scheme continues to evolve, it is expected to play a crucial role in shaping the future of India’s hydrocarbon industry and supporting the nation’s startup ecosystem.