The self-financed quantitative expansion of engineering education in Kerala since the beginning of the 2000s should not be seen as a logical expansion consistent with demand and supply. Rather it should be primarily seen as qualitative, contributing to a change in the meaning of what engineering education is and has historically been. The qualitative aspect of this expansion is argued from the political economy of engineering education and is deriving from the displacement of functional role attributable to engineering education following the crisis of skills in the new accumulation regime and the new role that engineering education has been playing in the regimentation of the overall field of higher education.