New Delhi: State-run oil and gas companies are planning to create a venture capital fund to encourage start-ups to develop new business models and infuse innovation into India's hydrocarbons sector, Petroleum Minister Dharmendra Pradhan said on Tuesday.

"PSUs (public sector undertakings), in consultations with the petroleum ministry, are planning the creation of a start-up fund for the oil and gas industry," Pradhan told the Indian Oil Corp's second gas conclave here.