The group hopes to cash in on the global `scarcity of software talent' and has already initiated discussions with leading universities in the US for strategic tie-ups, Manipal Group's executive director Dr Ranjan Pai said. The Government -- state and central -- clearance was awaited on varsity status for the institute, he said. Dr Pai told The Financial Express that the group had already located a 20-acre plot in Koramangala and construction was expected to be completed in a year. ``The IT university -- an off-shoot of Manipal Group -- will produce high-quality engineers in the country,'' he said. He said the university would offer specialised short-term training for corporates and other candidates besides PhD offering courses in optical and high-end technologies.

Former chairman of C-DAC N Chandrasekaran (currently the Pro-VC of Mahe) is expected to be the vice chancellor of the university. Dr Pai said the university would commence its operation from Central Park hotel (a property owned by the group) with an initial strength of 60 students on Novemeber 15.

``In a year, we will move into the new premises with a strength of 300,'' he said. Eventually, MIIIT was expecting to get around 40 per cent students from overseas. The university would have over 60 full-time faculty including teachers and experts from various universities and corporates. To this end, Mahe would go in for affiliations with reputed universities overseas, he said. ``Currently we are in talks with many reputed universities in the US,'' Dr Pai said.

Mahe exports educational services worth $16 million annually by training students from 35 countries across the globe. ``India is emerging as a big attraction and destination for quality education in line with Australia and the UK,'' he said. Australia and the UK together exported educational services worth $4 billion last year.

Dr Pai said, ``India will be able to compete with these countries in terms of educational services if IT is seriously considered.''Mahe was planning to establish a central fund for higher education along with a couple of ``like-minded'' people, Dr Pai said. The size of the fund would Rs 1,000 crore, he said.