Sticking the label of IIT to other institutions without significant upgradation of entry procedure and infrastructure will lead to no good. Its not the label of IIT that has worked in their case but the entry procedure ie JEE. So many IITs are creating confusion as to which one is good and which one are not. Yes! this is happening, I am myself a IIT KGP ian and umpteen professors from different countries have asked me this question that it is very difficult for them to decide that which one is good and which oen is not.
In pursuance of the current policy IIT will no longer be a brand name.