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All India Council of Technical Education (AICTE) chairman Anil D. Sahasrabudhe is ringing a warning bell for the country's engineering colleges well ahead of the start of academic year 2016-17. \"At least 100,000 seats of the close to 1.7 million seats for engineering will cease to exist. Over 100 colleges across the country will shut down even as 200 new colleges opened in 2015-16,\" he cautions. The 'dropout rate' is likely to climb as more colleges opt for progressive closure-stopping admissions while marking time for existing batches in different years of the four-year course to pass out of their portals. Meanwhile, in Karnataka, which has seen six colleges shut down from 2016-17 in Bengaluru itself, college promoters are now eyeing the realty market (by virtue of the prime locations of the colleges) since \"there is no money in education\". \"The only ones surviving are the ones with a service motto,\" says Karnataka's technical education director H.U. Talwar. \"Of the 206 engineering colleges in Karnataka, about 180 have no qualified staff and infrastructure,\" admits M.K. Panduranga Setty, secretary, Karnataka Unaided Private Engineering Colleges Association. The AICTE norms on infrastructure are clear vis-a-vis classrooms, workshops, labs, libraries, drawing halls, land size and student-teacher ratio. As per the rules, colleges must get affiliation every year from the local university and the department of technical education (DTE), the state's apex body on engineering, before a final extension of approval (EOA) from the AICTE. No engineering college can admit students until it has the EOA. But quite often inspections reveal that the information provided to the AICTE for the EOA does not match the reality on the ground. The AICTE is empowered to ban admissions, withdraw the EOA, even initiate criminal action, but this is seldom done. This year, though, may be different. \"My guess is it will ban first-year admissions or order reductions in intake of students and number of courses as well,\" says Maharashtra DTE director S.K. Mahajan.