Many IT companies have created funds to sponsor student contribution to Open Source projects.

Novell Open Source program

Please see the details available at http://developer.novell.com/opensource/index.html

Google Summer of Code

This is an annual program in which Google awards stipends to students who successfully complete an Open Source project in a fixed period in time (typically 90 days).

Overview of the program

http://en.wikipedia.org/wiki/Google_Summer_of_Code

You can check out the list of the participating Open Source projects at http://code.google.com/soc/2007/

Google Summer of code Blog

http://googlesummerofcode.blogspot.com/

IBM Great Mind challenge

Please visit the link http://www.tgmc.in/

Details about the IBM Academic Initiative program

http://www-07.ibm.com/in/university/