No, upgrading an institute to an IIT is a long and difficult process and therefore the presence of IIT Ropar, IIT Delhi, IIT Roorkee within the vicinity doesn't help its cause.
One of my friends have studied there and the following are his comments on PEC Chandigarh:
The institute administration has continuously been making demands for upgrading the institute to an Indian Institute of Technology, without any success. This is an issue that both faculty and students are looking forward to being resolved.