Lord Paul had announced a donation of 1 million pounds for the university and recently officially inaugurated a new Ambika Paul Building on campus in memory of his late daughter who died of leukaemia at just four years old in 1968.
Leading industrialist Lord Swraj Paul has been honoured with a special award in recognition of his contributions to the city of Wolverhampton in the West Midlands region of England.
Lord Paul, who has served as Chancellor of Wolverhampton University since 1999, was conferred the "Wolverhampton's Famous Sons & Daughters" award by Wolverhampton Partners in Progress at an awards ceremony earlier this week.
"I am deeply honoured to receive this wonderful recognition from the Wolverhampton Partners in Progress and to join the distinguished ranks of Wolverhampton's famous sons and daughters," Lord Paul said in a video message played at the ceremony.
"Though not from Wolverhampton by birth, I enjoy close links with this vibrant city, principally through my chancellorship of the university - a position I have held since 1999 - and through my association with industry in this area. Over the last 17 years, it has been a pleasure to see this city and the university go from strength to strength."
"Wolverhampton is a city of opportunity with its historic roots, diverse communities and industrial heritage all helping to join people together and make it so special. I am particularly proud to be associated with the university that has such vision and one that has created great opportunities for local as well as international students," he added.
His award was collected on his behalf by the university's vice-chancellor, Geoff Layer, who spoke of the Caparo Group chairman's "enormous generosity".
"The time that he gives to us and the city is phenomenal. Swraj is always opening doors, always helping us. He is so proud of his connections with Wolverhampton," Mr Layer said.
Last year, Lord Paul had announced a donation of 1 million pounds for the university and recently officially inaugurated a new Ambika Paul Building on campus in memory of his late daughter who died of leukaemia at just four years old in 1968.
Among the other winners this year included Lord Mervyn King, the former governor of the Bank of England, and former England cricketer Vikram Solanki, who played at junior and senior level for Wolverhampton Cricket Club and praised the "warmth, consideration and understanding" of its members.
Graham Evans, of Wolverhampton Partners in Progress and the driving force behind the awards, said they were launched to celebrate Wolverhampton and its people.
The event is supported annually by Wolverhampton City Council, Wolverhampton University and the 'Express & Star' newspaper group.