It will be the first time the Japanese capital has hosted the Games since 1964.
The decision to launch the new fund is widely seen as a softening of the elite sport body's "no compromise" approach, under which only sports with an expectation of winning a medal at Olympic or Paralympic Games receive support. At that juncture, however, the project had collected just around half of the 30.3 kg of gold and 4,100 kg of silver needed.
Next year's medals will be made in part from metal recycled from cellphones and small electronic devices. After collecting more than 48,000 tons of e-waste, the target for bronze has been met, while the country has 85.4 percent of the silver and 93.7 percent of the gold necessary.
All Olympic and Paralympic medals can be made from devices already donated, the committee is estimating, with nationwide collection scheduled to stop on 31 March.
By November past year, 47,488 tonnes of discarded devices had been collected, with the public handing in another five million used phones to a local network provider.
The concept has been implemented in previous Olympics, most recently at Rio 2016, where an estimated 30% of the silver and bronze medals were wrought from recycled materials.
Later this year, after the recycling program concludes, the Olympic committee will reveal the design of the 2020 medals.
Speaking to PTI on the sidelines of a function to felicitate medal winners of the recently-concluded 18th Asian Games in Indonesia, Rathore elaborated on the initiatives, that he feels, have put India on the path of becoming a sporting powerhouse.