We already have 7 IITs and I don't see the need for any more at this point.
We got Roorke and Guwahati in recent years and can wait sometime to build a new one.
There a few problems with 're-upgrading' of some of the recently 'upgraded' NIT's.
1. It would require a considerable effort to upgrade the infrastructure to bring them up to the level of IIT's.
2. The faculty at these NIT's were recruited mostly locally and had lesser stringent standards of appointment than IIT's. Certainly a Ph.D from MIT or Harvard would choose to work in the industry/IIT rather than NIT.
3. There is also the concern that the faculty at the NIT's will not be able to maintain the standards expected at IIT's.
4. The most crucial problem here is that of admissions to NIT's.
For instance Suratkal is upgraded to IIT and NIT Jamshedpur is not.
Then obviously students from Bihar/Jharkhand or as a matter of fact any other state will not have quota in an NIT in Karnataka.
Then they will ask as to why we should admit students from Karnataka under the quota system when there is no reciprocal benefit.
5. Upgrading NIT's to IIT or down grading them to state college is also not the solution.