It depends you obviously know that you are not getting good colleges and hence you are going for private college btech. If you do btech from a college in your city then you will be near your home that in itself is an advantage moreover since you are not getting a good college so you do not have an advantage in either lpu or a college in your city, lastly talking about scholarship that you are getting then it does not make any sense as even after scholarship your lpu fee would most probably exceed the fee of a college (private) in your city hence it is better to stay near your home and work on your skills.