By Sruthi Gottipati, CNBC-TV18

The shortage of faculty is increasingly becoming a big problem for Indian educational institutions. CNBC-TV18 finds out what Business schools are doing to encourage doctoral students, who can then be absorbed as faculty.

Educational institutions, especially B-Schools, seem to have tired of letting the lure of the corporate world rob them of good-quality faculty. They are now taking matters into their own hands. Institutions are falling back on a "do-it-yourself" approach. They are encouraging students to take up a doctoral programme and absorbing them as faculty thereafter.

“In the first year, we are giving them a stipend of Rs 25,000 per month. Second year, it's increased to Rs 27,000 per month. In the third year, in foreign universities they are paid a grant of USD 1,500 per month in addition to their travelling expenses which we waive,” said SK Sharma, Director, ICFAI.

At the end of this research stint abroad, these students are absorbed as faculty and have to work on their PhD thesis alongside. ICFAI is also tripling its intake into its doctoral research programme to 60 students.

It's not alone. ISB, Hyderabad, is launching a pre-doctoral programme - a Rs 10 lakh two year residential programme that will be offered completely free.

IIM-C isn't far behind either. It plans to triple its doctoral stipends to Rs 60,000 per month and also encourage foreign exchanges between PhD students to keep them engaged in the programme.

These steps, while small, seem to be working.

“I am an MBA and I started my career in the corporate world because at the end of the day I used to feel something was lacking. The career after sometime becomes static. And if you're a person who wants to learn more, who is more academically oriented, this job at the end of the day is more satisfying than a normal corporate job,’ said Nitin Gupta, PhD Student and Assistant Professor, ICFAI.

These programmes could prove to be just what the doctor ordered for Indian B-Schools- a solution to their problems, while providing both intellectual growth and job satisfaction at the same time. And while it's still at a nascent stage it could well emerge as a case study in future coursework.