The move comes against the backdrop of HRD ministry asking all IITs to take new initiatives, in addition to the existing measures, to stem the trend of student suicides.
The revised curriculum, which is likely to be implemented from next year, will have reduced focus on theory and students will be offered more hands-on experience.
The departments at IIT have been asked to draft a revised curriculum which will then be approved by the Governing Body, which also approved the required changes in the credit system.
He said the IIT Delhi in an internal survey found that there is a mismatch between the students' and the institution's expectations.
"By the time students come to IIT, they are tired of endless studying and they want to enjoy a bit. We, unfortunately, do not offer any scope for that," Rao said.
He also said it is important to guide students at fresher-level only, because, he said, if they start developing "coldfeet" and have "backlogs", it becomes difficult for them to survive for another three years.
The IIT Council, the apex coordination body for 23 IITs, had last week decided at a meeting chaired by Union HRD Minister Prakash Javadekar that all IITs will have wellness centres to help students deal with mental stress and also non- academic induction programmes for freshers.
The issue drew attention after the recent suicide by an IIT Kharagpur student, the third such case at the institute in this year.
However, it has been a matter of concern for previous governments as well.
In 2011, under the then HRD minister Kapil Sibal, the IIT Council had decided to set up a task force to address students' mental health needs.
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