NEW DELHI, DECEMBER 08, 2004
IANS
California-based venture capitalist Vinod Khosla has gifted $5 million
for a school on information technology at the Indian Institute of Technology
(IIT) and is funding a series of micro-credit foundations in India.
"I am contributing $5 million towards the school at IIT Delhi where
I studied. The name of the school has not been decided yet," said
Khosla, partner in the Melno Park (California)-based venture fund Kleiner,
Perkins, Caufield and Byers.
"The curriculum and coarse structure for the school are being
worked out by the IIT faculty," Khosla, here on a personal visit,
said.
An alumnus of the IIT where he pursued a bachelor's degree in electrical
engineering, Khosla was a co-founder of Daisy Systems and the founding
chief executive officer of Sun Microsystems.
On the issue of micro-credit, he said he wanted to replicate the success
of Bangladesh's Grameen Bank in India and fund tiny enterprises in small
towns and villages.
"One of the institutions I am contributing to is Share in Hyderabad.
There are two-three others I am talking to and the discussions are in
various stages," said Pune-born Khosla, who went to St Mary's School
here.
Share - or Society for Helping and Awakening Rural Poor Through Education
- was founded in 1991 by M Udaia Kumar. As in April, the programme had
reached out to around 30,000 families by disbursing loans worth some
$75 million.
Asked about the investment he proposed to make in microfinance, he said:
"This not something I can define. A few million dollars will go
a long way. These are not things you do for profit."
Speaking at Stanford recently where he pursued a master's degree in
business administration, Khosla said he began looking at the concept
of micro-credit in India some three years ago and found its potential
immense.
"In fact, I think it is so important, I can't think of an economic
phenomenon after capitalism that is more important than micro finance,"
he had said.
"This is a whole new avenue for capital-capital on a commercial
basis that's competitive with market borrowing rates so more capital
can flow into this."
Khosla said he now devotes "slightly less" time to the venture
capital industry and uses the time gained for pursuing interests in
areas such as microfinance and philanthropy.
"I want to take micro-credit to other countries, especially in
Africa, where there is a good scope to make a social impact."