Dear Mythili,
Requirements for the tasks given to college interns differ from one industry to another and from one company to another. Much depends on the type of work that interns can do, their education level, and above all, their IQ level. Many times interns get frustrated because they are given very basic level tasks. Interns consider it as the underutilization of their talent.
Irrespective of the level of assignment, many interns complain that the organization was not ready for the assignment. Interns are just called and told to sit in their office for the first few days or even a week. Interns are helpless and also hapless as they cannot make complaints for the wastage of their and the organization's time. Then somehow some task is created to save the face of the organization.
Interns are brand ambassadors of your company. If quality assignments are given to them, they spread the name of the organization almost throughout their entire career span. Many companies have used interns for generating ideas for process improvement or product enhancement. In contrast, other companies use them for the job of an office assistant or a clerk. A few are also given jobs like cleaning the storeroom! Now, which side of the spectrum you wish to be on is your leadership's call.
Include all the above points in your policy on internships.
Thanks,
Dinesh Divekar