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Energy start-up ecosystem in India is gaining traction, with the government and private players stepping in with funds and mentorships.
However, experts say there is a need for radically new ideas that are viable from the technical and business point of view.
Energy sector initiatives
Since 2017, the oil and gas public sector undertakings launched various start-up initiatives and set up funds to encourage entrepreneurship in the energy space. For instance, the Petroleum Ministry launched a start-up fund of ₹320 crore, ONGC launched ₹100-crore start-up fund in August 2018 and Indian Oil (IOCL) to the tune of ₹30 crore in 2017.
More often than not, these funds are for ideas and to help companies reach proof-of-concept stage. Start-ups say this has made a huge difference for the budding entrepreneurs.
Abhishek Kumar, co-founder, Vasitars Pvt Ltd, that offers solutions for damaged oil/gas pipelines and was funded by Indian Oil, said, “The energy start-up landscape can be divided into before 2017 and after 2017.”
According to Kumar, before 2017, it was difficult for start-ups to enter the sector as there was no platform. The oil and gas companies were a little sceptical, given the risk and sensitivity in the area.
“But that began to change after 2017 when the funding was set up. Now you have a readymade platform and it has become quite easy now. Only thing they require now is a saleable product,” he added.
Anirudh Yadav, founder, Sukriti Social Foundation that was funded by IOCL in early stage, said, “The advantage of being funded by Indian Oil is the insight we get into the sector as they helped us in understanding the market.”
Challenges
But, the energy sector is full of challenges. The field needs new ideas that can improve existing infrastructure.
“Energy companies invest heavily in research and development. The focus is to incorporate ideas and products that can improve the existing infrastructure and processes. The companies do not shy away from spending big bucks if the product is right,” an industry watcher said.
Another issue is the huge gap between academic knowledge and implementation. “You need to have field experience to understand what works and what does not in the field. Now, with these programmes, they are giving that opportunity,” Kumar said.
In addition, most of the solutions the space sees are technology oriented. “But what the energy sector requires is manufacturing related solutions.”
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