‘Start-Up India’ is a flagship initiative of the Government of India. It intends to build a strong eco-system for nurturing Innovation and Start-Ups in the country, to derive sustainable economic growth and generate employment opportunities. Government policies are also encouraging Start-Ups by providing fiscal incentives.
GAIL intends to take-up investment in Start-Ups to give a boost to the Government’s efforts and also to derive long-term benefits.
Our Mission for Start-Up Initiative is to Identify, Invest and Nurture Start-Ups that can become successful companies in the long run and provide profitable returns from this diversification.
GAIL had launched its ambitious Start-Up initiative ‘Pankh’ in July’ 2017 to invest in promising Start-ups. GAIL has made investments in 24 Start-Ups operating in various Areas.
India has vast Biomass resources and the Government is giving special emphasis on its gainful utilization by encouraging setting-up of Compressed Bio Gas (CBG) plants. Further, Oil & Gas Companies are ready to give commitment for offtake of CBG through issue of Letter Of Intent (LOI). Thus, it provides good Business opportunity to Start-Ups operating in this Area.
GAIL plans to invest in Start-Ups operating in this upcoming Area. A new Round has been opened by GAIL for Solicitation of Investment Proposals from Start-Ups operating specifically in the Area of CBG. The Start-Ups that are interested in equity investment from GAIL can apply on our website gailonline.com GAIL’s equity investment will be limited to 20% of the total equity of the Start-Up.
Proposals are now solicited from Start-Ups operating in the following Area of CBG :
- Start-Ups that provide Technology,
- Start-Ups planning to expand their existing CBG plants
- Start-Ups planning to set-up new CBG Plants
GAIL would look at the following criteria while evaluating the Investment Proposals of Start-Ups that are planning to expand their existing CBG plants or are planning to set-up new Plants :
- Experience of Founders in CBG or its related business
- Details of existing CBG Plants / infrastructure
- Plans for expansion / Setting-up new Plants
- Plans for arranging BioMass feedstock
- Status of Land for expansion / new Plants
- Details of LOIs received for offtake of CBG
- Technology Identification / Tie-up
- Project Feasibility Study for expansion / new Plants
- Status of Approval from Government for Grants under Swachh Bharat Mission (SBM) or under any Urban Infrastructure Development Program or Central Finance Assistance (CFA)
- Funding from Incubation Centre, if any
- Plan for Financial Closure including details of equity contribution by Founder/Other Investor and tie-up for Debt component
- Current Valuation of the Company
- Investment Amount sought from GAIL and the % Equity stake offered to GAIL
This Solicitation Round is open from July 06, 2020 to Aug 12, 2020..
Selection Process for funding Start-Ups :
Selection of Start-Up Proposal shall be a 4-Stage Process:
- Eligibility Screening