Engineering education is regulated by the All India Council for Technical Education (AICTE).
It has a fairly stringent check list that all engineering colleges need to fulfill: not less than 2.5 acres of land, not more than 300 students per acre, corpus of at least Rs 1 crore for operational expenses, student-teacher ratio of not more than 15, student-personal-computer ratio of at least 4, etc.
But that's hardly proved a deterrent.
Setting up an engineering college can cost upwards of Rs 15 crore, depending on real estate prices, and payback happens in seven years.
On the other hand, the demand will never see a slowdown.
Indian parents, it is universally acknowledged, never flinch before spending large sums of money on their children's education.
Higher education in India is immensely valued. That explains the glut.