Start-up in GAIL

GAIL has created a corpus of ₹ 50 Crores to be invested in Start-Ups to support the Government of India (GoI) Start-Up initiative and to generate long term commercial benefits. GAIL may also infuse further funds in this initiative based upon investment requirements or upon success of this initiative.

GAIL is an innovation and technology driven company operating in the field of Natural Gas and its derivatives. In order to stay competitive, it is required to keep abreast with the latest technological developments in our core businesses. Investment is Start-Ups in our Core Areas is likely to play an important role in our quest to gain competiveness.

In addition, GAIL envisions to promote sustainable development of the Environment and Society, in fulfilment of our role as a Socially Responsible Corporate. In alignment with these thoughts, GAIL will be open to invest in Start-Ups from Health, Social and Environmental sectors as well.

Our Mission is to identify, invest and nurture Start-Ups that can become successful companies in the long run and provide profitable returns from this diversification.

Selection Process for funding Start-Ups :

Selection of Start-Up Proposal shall be a 4-Stage Process:

  1. Eligibility Screening
  2. Shortlisting
  3. Evaluation
  4. Approval
  1. The Start-Up should be in our Core or non-Core Area.
  2. GAIL will consider Proposals for funding only from those entities who are considered as a Start-Up (as per Department of Industrial Policy & Promotion- DIPP). Presently, these conditions are
    1. Up to seven years (ten years, in  case of Start-Ups in Bio-technology Sector) from the date of its incorporation/registration,
    2. If its turnover for any of the financial years has not exceeded ₹ 25 cores, and
    3. It is working towards Innovation, Development, Deployment or Commercialization of new Products, Processes or Services driven by Technology or Intellectual Property.
  3. Provided that any such entity formed by splitting up or reconstruction of a business already in existence shall not be considered a 'Start-Up'. A proprietorship or a public limited company is not eligible as Start-Up.
  4. In addition, the following Eligibility Criteria should also be met : The Start-Up should not have been black-listed by any Government entity or any Incubation Center. The Promoter(s) shall not have any criminal case pending in any Court of Law in India. A Declaration to this effect shall be required to be submitted in this respect.
    Click here to download Declaration

Note : It shall be GAIL’s discretion to Shortlist / Reject / Select any proposal without assigning any reason thereof. GAIL’s decision shall be final and binding in this regard.

The following Criteria is proposed to be used for Shortlisting of Start-Up proposals :

  1. Technical Feasibility
  2. Scalability
  3. Key Team Member's Profile
  4. Founder's Background
  5. Risks involved and Mitigation Plans
  6. Financial Returns
  7. Market Size and Growth Rate
  8. Patentability

GAIL shall evaluate the top rated shortlisted Proposals through a specially formed Committee for the purpose. The said Committee shall also have outside personnel with the necessary domain expertise.

The Committee shall discuss the Proposals with the Start-Ups for carrying out the evaluation. The Committee shall use the following broad criteria for evaluation :

  1. Does the idea bring a unique proposition
  2. Target market identification
  3. Founder and Team
  4. Marketing and Distribution
  5. Significant competitors in similar projects
  6. Start-up financials
  7. Future road map of Start-Up
  8. Primary risks involved in the project
  9. Plan for use of GAIL's funds
  10. Exit scenario from the Start-Up

The Committee will also discuss the Milestones, Payment terms, Financing options etc. Thereafter the Committee shall submit its recommendations to GAIL.

The Start-up shall be required to sign an Agreement before commencement of Funding by GAIL. The draft Clauses of the Agreement shall be provided when the Start-Up is called for discussion with the Committee. These Clauses shall also be finalized during the meeting with the Committee.

GAIL shall deliberate the recommendations of the Committee for funding.

Subsequent to approval, GAIL shall send a Letter of Acceptance (LOA) to the Start-Up informing GAIL decision. The LOA shall have the salient features of the funding approval viz. Amount of Funding, Milestones etc.

The Funding shall commence after the Start-Up submits the signed copy of LOA as a token of acceptance along with the Agreement.

Note:- GAIL shall keep the Information submitted by Start-Ups as strictly confidential.