There was no "stronger case" for setting up a new institute when the Institute of Crop Processing Technology under the ministry was already conducting courses on food technology, the panel said in a report.
Besides, the committee on agriculture has said that the National Institute of Food Technology, Entrepreneurship and Management has seen cost escalation and time over-runs.
"In the committee's view, the objective of setting up of the NIFTEM could have easily been achieved at fraction of the cost of NIFTEM and within shortest time, by suitable upgradation of the IICPT," said the report, tabled in Parliament yesterday.
"The cost of project shot up from Rs 245 crore to Rs 480 crore and the project which was originally anticipated to be completed in 2009-10 is now expected to be completed by only June 2014," it said.
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The report has also revealed the proposal to set up NIFTEM was approved by the Expenditure Finance Committee despite serious reservations by the Department of Expenditure, Planning Commission, Ministry of Health and Human Resource Development.
"Besides the form of organisation of the institute was misconceived. The knowledge sharing partner disassociated itself midway. The committee do not expect such amateurish handling of a project relating to an institute which was projected to be a global centre of excellence," the report said.
Committee has also suggested that the institute should emulate IITs to attract best faculty as out of the total 45 posts for faculty, only 24 have been filled up.