I think following points need to be considered by government.
1. Even existing IITs are not getting good enough replacement for old professors that are retiring. How would new ones get them.
2. With a meagre government funding IITs are able to keep up with technology only through donations and support of Alumni. If govt cannot give funds just giving the name of IIT to a college would change nothing.
3. Keep in mind the demand-supply equation. If you produce more engineers than the industry can hire, you would spoil everything. Four years back avg salary in IITs used to be above 3.5 lakhs per annum. Now companies dare to offer as low as 1.8 per annum.
