creating more IIT's will definitely reduce the prestige of the present iit's. IIT is considered as a very good institute all over the world and especially in USA where the students of IIT are excelling in the research work. It would be better, if Govt of India considers doubling the number of students by way of incresing every year 25 % more seat, at the same time maintaining the same standard for admission and course. This will reduce the budget and also prestige of these institutes.
if the Government starts thinking of incresing more number of iit's, it will take 5 to 6 years for them to establish and by that time, the technological advancement in education would have changed.
Alternatively, like C.A / M.B.A, the Govt.can float a new university with very high standard competitive exams and give degree.