Firstly I haven't been following the reservations issue closely. But this is just my take at how reservations should be implemented for educational institutions.
Rather than having a caste based reservation, I would prefer having a reservation against location or strata of the society. Primarily it is not just backward castes that needs help or reservation. There are lot of people belonging to forward castes who suffer economically and also from lack of exposure. Reservations should be looked in from a different angle so that all the downtrodden sections of the society gets uplifted and thereby we also alleviate the caste based stigma.
The current reservations are kind of overkill for all the forward castes and in this competitive world capabilities of the individual should be given higher priorities than their caste.