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.
Sounds like old people trying to justofy their capricious behaviour, nothing new. It's like 'backnin my day' and 'millenials'
If they want, they can get ACs.
This is also one of the richest universities of India- not merely one of the best.
I also heard of someone who studied medicine at AIIMS Delhi. It is another of rich institutions of India. The rooms, although small, will match a 3 star hotel in terms of amenities. The same is simply not true for IISc. Despite being one of the richest unis of India, their amenities do not match that of AIIMS Delhi.
But that institute is not cash-sterved as Indian institutes go. The labs are great, the faculties are the same. Many of them can easily teach at any US uni.
What I think is the reason of absence of ACs in rooms is the Bangalore weather.
During most of the year, you really don't need an AC or even a ceiling fan.
At undergrad level, there is the BS (Research) programme, where you get through the KVPY exam, a specialised test for HS seniors for entry to this school only. (You can look up papers if you want)
Then, for entry to grad school, you have to rank near the top (~200 , ~60-100 for AI) among 100k (for CS paper candidates). And then you have to pass rigorous technical, and personality interview(s).
So, they take in the best students.
This institute always ranks the highest in internal rankings.
The labs are top-notch, the uni is cash-rich, and the faculty is as good as US unis (maybe not Stanford, Ivies, etc.).
I know multiple people who went there and/or still lives there.
I hear only good things.
But, yes, the people who are opting for grad schools after a 4 year CS degree are almost always from upper middle class and rich families (studies in India are almost always funded by parents unless you were already earning in a full-time job).
So, yes, the populace you would find there are almost all from affluent families, but there are some people from financially challenged families, too.
The undergrad exams are very hard and you can appear only once. I blew my one chance because I had severe typhoid at the time of the exam!
Now, if my plans to get into a grad school in North America / EU does not pan out, IISc is right at the top of my choice list in India.