From the experience of conducting the similar event named "Hacker Hunt" but restricted to Some 3-4 universities in Kerala. I'd suggest few points: 1.) Grading should consider team coordination. 2.) Willingness among the participants to share if they find the next one is les competent.
Although I din't understand, whether the prizes have been fixed for individuals or for the teams? But certainly its a wonderfull attempt, I'm looking forward for more such events in India.
Why is it that all big s/w companies hold these kind of events only for BE/MCA students? Students from other backgrounds are often discriminated against when it comes to s/w & programming jobs/competetions.
It must be remembered that aptitude for programming/coding does not exist only in BEs/MCAs or people with good marks. This kind of discrimination is unfair & biased & increases unemployment inspite of having talent. If you will look around you will find there are many good programmers among plain graduates also (irrespective of marks)
By all other aspects this competition is a good idea
Why only for students of certain courses? Programming is about logical thinking and skill and something almost every student does. After all, it is a competition, should have been open for all interested students.