Among the 20 new Indian Institutes of Information Technology (IIITs) to be started in the country, only one IIIT might be established in the State though four organisations expressed their interest to set up the institute. In the backdrop of Union HRD Minister M.M. Pallam Raju introducing a bill in Parliament for setting up the institutes, enquiries revealed that only one proposal was sent to the HRD Ministry for setting up the institute at Satyavedu in Chittoor district. But even that was not cleared yet.

However, two other proposals were submitted by industries for setting up IIITs in Medak and Vishakapatnam. However, no proposals have been sent to the MHRD so far by the government. Laxmi Power Tel Pvt. Ltd expressed its interest for Medak while Core Higher Education Pvt. Ltd expressed intention to set up at Medak, Chittoor and Vishakapatnam. Sri City Foundation also submitted proposals for Chittoor district. The stumbling block for the proposals is said to be the land issue as the State government has to allocate 100 acres. High cost of land in Medak and Vishakapatnam has become a major issue, according to officials.