The point is simple-->
No matter where the institute is located, it is an IIM.
IIM. And IIM Shillong sounds pretty good too

And as far as the infrastrructure and all are concerned, my take is that they are not at all a problem as IIM S would walk in the shoes of IIM I, which was originally a single block of building!
And looking at the way the Indian business is roaring, the placements in IIMS would soon pickup. Probably earlier than what some people have guessed it here... 3-4 years?
Shillong is definitely a good place to have an IIM unless people would get bored with hills, rains and beautiful nature. With an IIM around, the city sure is going to improve. Now,
this will take some time... but anyway all this doesn't matter cos--> we are havaing an IIM!
I'm not really sure how many would call this an RGIIM. I prefer an 'IIM-S'

You know.. IIMS sounds more royal than RGIIM!