At the beginning of the academic year, the authorities wanted to bring new caterers, advertisements were released and quotations were invited. The institute received several responses. But to the utter dismay of authorities, none of them were ready to run the mess at a daily cost of INR 93. The fear of losing contract would generate only when there are competitors and that would happen only when the institute decides to increase the Mess fees, else it's tough to attract new caterers.
Another viable alternative to this can be the implementation of coupon system, where the students decide the number of meals that they would've in their respective mess (or any other mess in the institute, for that matter). This would give them the discretion to choose the mess and the meal as per the quality of the food served by the caterer. And hence, the competition between existing caterers would increase and the entire system will improve consequently.