In 2002-03, the Government of India with the financial assistance from the World Bank launched a Technical Education Quality Improvement Programme (TEQIP) as a long-term Programme of 10-12 years, to be implemented in three phases for systemic transformation of the Technical Education System. The first phase of TEQIP commenced in March 2003 and ended in March 2009, covering 127 institutions in 13 states. The objective of TEQIP program was to improve the available infrastructure and equipments in addition to Faculty/Staff development. The focus during the first phase of TEQIP programme was on strengthening the quality of under graduate education in the selected institutes. Funding was given to lead institutes and many other institutes in a region were networked to the lead institute of that region. Under this project NITK was designated as a lead institute. A sum of Rs. 210 million was received and productively spent over different carefully designed projects during the duration of the first phase.

It was widely felt that process of reform and systemic improvement initiated by TEQIP-I needed to be sustained and scaled-up for embedding gains acquired by the system. The process of transformation initiated needed to be scaled up and taken to higher levels. To continue the development activities initiated through TEQIP-I, a sequel project was been planned. The second phase of TEQIP (referred to as TEQIP-II) is fully integrated with the Eleventh Five-year Plan objectives pertaining to Education which envisage improvements in Technical Education as a key component for improving the overall quality of Education in Indian institutions. The prime objectives of TEQIP-II include scaling up of Postgraduate Education, Demand - Driven Research & Development,  Innovation and enhancing existing Capacity. TEQIP-II with a financial outlay of Rs. 125 million was launched in March 2011 with NITK entering into MOU with MHRD for successful implementation of the project.