Dear Mythili,
Requirement for the tasks given to the 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 under-utilisation of their talent.
Irrespective of the level of assignment, many interns complain that the organisation 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 complaint for the wastage of their's as well as organisation's time. Then somehow some task is created to save the face of the organisation.
Interns are brand ambassadors of your company. If the quality assignment is given to them, they spread the name of the organisation almost in entire career span. Many companies have used the interns for generating ideas for process improvement or product improvement. In contrast other companies use them for the job of an office assistant or a clerk. Few are also given jobs like cleaning storeroom! Now which side of the spectrum you wish to be is your leadership's call.
Include all the above points in your policy on internship.
Thanks,
Dinesh Divekar