The quoted lines are talking about the fixed capital.
Fixed capital is that portion of funds which is used to purchase fixed assets. In the words of BO Wheeler, fixed capital is invested in fixed or long run assets.
The following points state the importance of fixed capital
(i) With the help of this, capital acquisition of fixed assets are possible..
(ii) This capital is used for meeting the permanent needs of the company.
(iii) This capital is also used again and again to generate revenues for company.