The reason is different and it is even more silly. It has to do with generation gap. If you complain, as a student, about lack of any facilities the immediate response you get from the person in charge (typically of my parent's generation) is: "We used to study under candle light. See how weak you people are. You can't tolerate few hours of electricity cut". Now what answer can you give to this? It was very common when I was in NITK, Surathkal where we used to get cold water for bath (many would use electric heaters to warm water). When asked for installing geysers the typical answer would be: "This is coastal area. You should bathe in cold water. It is better for your health". But they had plenty of money to build 6 international standard mega blocks (each with 7 floors) but "apparently" no money to invest in ACs and hot water. Its a generation gap issue. "Let them struggle a bit. They'll understand harshness of life that way. Else they'll become lazy". Nothing to do with lack of money.

Note that this is not the case with private institutions which are much better equipped. Only with Government funded institutions. Which is a huge irony because the Government literally wastes money building new educational blocks and hostel blocks but doesn't invest a tiny portion of it in improving the facilities within those blocks. We just have to wait 1 generation more to fix these things. It is a mindset issue.

If they want, they can get ACs.