It is a well known fact that present day economies are governed by globalization, privatization, and liberalization. Technical education plays an important role in the spectrum of human resource development, and assists us in improving academic standards and qualities of student education which in turn lead towards improvement of the standard of the country. The planners accorded high priority for this sector by realizing its importance. This paper deals with engineering education in private sector under present and future scenario. There is tremendous demand for technical education in engineering which results in isomorphic growth in private organizations or engineering colleges. The advent of FDI and world class campuses in India, twinning programs and faculty exchange programs, promises lucrative prospectus in the future of engineering education. With the initiatives, there are some challenges which are to be faced with difficult situation. The paper tries to elaborate on the challenges and discuss some of the problems with solutions. A case study was also conducted, with both a pre-test and post-test (n=700). The pre-test showed 43% to 54% improvement. And the post-test showed results of 52% to 91%, resulting in marked improvement in knowledge gain.