Having said that, I think the initiative is good, though its not mature yet. They are evolving over time, they have come from saying something like "we will put in a big place and give you a bed, table, pc and Internet connection so that you can work whenever you wake up" [treating as kids or just coders, 2008] to saying something like "we will give 5L and open an account for the company" [treated as entrepreneurs, 2009]. Still, a long way to go.
The 2008 archives with some photos http://www.ciieindia.org/blog/category/iaccelerator/ . I do agree that they have a bad choice of photos on the blog, it does effect PR.
Moreover they will need someone like PG to make it like YC, that ain't happenin' that easy. :-)
Still, I wish them luck! We do need "worthy" YC clones in many countries.