The precise reason why IITs produce gems is their being few in number. Over the years the tag has become synonymous to quality 'coz of the work done by the alumni. An institute does notbecome entitiled to the same respected just by being named IIT. In fact, we may risk diluting the image.
Offer the best facilities to the other institutes, call them whatever; RECs or GEcs...... and if they show the results, we;ll probably have them as respected as the IITs.
Do not play with the IIT tag, concentrate on improving the learning conditions and u cannot stop the best brains in the country from flaunting their genius, whatever tag they may sport!!!!!