22,000 Engineering Seats Find No Takers In Karnataka - Supply More Than Demand?

As per a report in Times of India,

According to information furnished by the Karnataka Examination Authority (KEA), the number of seats that have gone abegging would come up to a whopping 13,000 seats through the #-Link-Snipped-# Entrance Test (CET).

I am sure this is the case with most of the states in India.

This gets me thinking, is the Indian Government supplying more than what is needed? Are they trying to push students into joining engineering colleges (just because there are seats available?) Are we creating 'average engineers' due to this scenario?