There have been some inquires on the procedure for promotion of faculty in IIT/IISc.
In IISc, the normal period of promotion is 6 years from assistant professor to associate professor and 6 years from associate professor to full professor. At the end of 5.5 years, the section will ask you to file your papers. The format of the details to be filed are given here. You suggest 8 referees (4 Indian and 4 foreign) and the department will suggest 8 referees (4 Indian and 4 foreign) and this list is sent to the divisional chairman. [In IISc, we have six divisions and departments belong to a particular division. Each division has a divisional chairman.] He will pick up 8 names from this and send your details to these referees. Once the comments are received, these will be discussed by a promotion and assessment committee. This committee consists of all six divisional chairmen, the associate director, director and 8-12 very eminent scientists from India, who do not belong to IISc. The case will be considered by this committee and you will be promoted. Cases are also considered for early promotion (and termed as "out-of-turn"). These are not frequent and, as far as I know, only ten faculty have been promoted out of turn in the last ten years.
IITMSriram, a frequent commentator on the posts here, has written about the promotions in IITs as follows. This is different from how 'promotions' happen at IITM (generally similar in other IITs also). IITM does not have 'promotion' but actually recruitment to higher posts. So, every 2-3 years or so, an advertisement is put out calling for applications for asso and/or full profs (and also asst profs). Every department has its own norms for shortlisting and the institute also has some overall norms - in the form of x publications, y MS / PhD graduates, z volume of sponsored projects and some norms for teaching activity (new courses introduced, new labs, new teaching methods, tools, aids etc and also feedback from students on effectiveness of teaching). The applications received in response to the advertisement (will include local 'promotion' candidates and also external applicants) are scrutinized by a department level committee for shortlisting. The report of this committee is sent to central administration which then arranges for interviews by a selection committee. The selection committee consists of the Director, subject experts nominated by the department (through senate) and the board of governors and also one of the members of the board of governors (often one of the faculty representative on the board). In the case of professors, there is also an expert nominated by the Visitor (the President of India) whereas for assistant and associate professors, the Head of the Department takes this slot. Candidates called for interview usually make a presentation in the department; the feedback from the department from this presentation, the report of the departmental shortlisting committee and the application package are all presented to the selection committee which then interviews the candidates. Now-a-days, candidates who are not able to be physically present are interviewed over the phone by the selection committee. It is entirely upto this selection committee to decide on appointment and initial salary. Obviously, the subject experts in the selection committee play a crucial role.
It is important to realize that promotions yield hardly any monetary benefits. Continuous increment of 3% of Basic+AGP will ensure that one will reach the end of the scale of 67,000 at the end of 23 years, if never promoted (see orange columns). If promoted to professor under the IISc scheme of 6 years as assistant professor followed by six years as associate professor (see green columns), one will reach the end of the scale at the end of 21 years. The only difference will be in the grade pay.
Please do NOT post individual grievances in response to this post. This post is only meant to provide the norms and guidelines that exist in these places. Exceptions of either kind (early/late promotions) exist in all places. IIT-M recently promoted a faculty in chemical engineering directly from assistant professor to full professor. Similarly, IISc has offered associate professorship to a faculty who had only three years after his Ph.D etc.