Scholarships, specially in foreign academic institutions are given on the basis of merit. In some cases financial background is considered. No true academician would care about the genetics of his colleague - whether student or faculty or staff!
Sure we have issues of colour and race all over the world, but to actually find a reason to divide ourselves based on caste seems amazingly petty to me. Just because we cannot divide ourselves on colour, wheatish and dark brown - both being shades of brown - we choose man made divisions : caste, religion, language ... and before anyone says anything, I accept that religion has become a worldwide issue too, more's the pity.
The suggestion to have 100% reserved institutions seems to me a sound idea - if you wish to bring in a level playing field, it needs to be level for all "castes". Are all so called "forward" castes allowed into institutes such as IIT irrespective of their merit, simply because they are "BRAHMINS"? So why does merit get waived for non-forward classes?