CBS/AP/ August 1, 2012, 3:31 AM

India's power back on, for now

Stranded passengers stand near empty railway tracks as they wait for train services to resume at a railway station in New Delhi, India, July 31, 2012.

Stranded passengers stand near empty railway tracks as they wait for train services to resume at a railway station in New Delhi, India, July 31, 2012. / AP

(CBS/AP) NEW DELHI - India's top electricity official says power has been restored across the country after a major system collapse led to the worst blackout in history.

An estimated 620 million people were without power after India's northern, eastern and northeastern grids cascaded into failure Tuesday afternoon.

Electricity workers struggled throughout the day to get power back to the 20 affected states. They restored most of the system in the hours after the crash. (Click at left for a full report on the outages)

Power Minister Veerappa Moily told reporters Wednesday morning that power had been fully restored.

The government has ordered an investigation into what caused the crisis.

Moily said he did not want to point fingers. Other officials said the crisis might have been caused by states drawing too much power from the grid but some analysts dismissed that explanation.

"I just can't believe that there is no system in place to check whether the states are drawing more than their limit or not," said Samiran Chakraborty, head of research at Standard Chartered, a financial services company. "There has to be a much more technical answer to that question."

At a contentious news conference, R.N. Nayak, chairman of Power Grid Corp., which runs the nation's power system, said his staff was searching for the cause of the problem and pleaded for patience.

"We have been running this grid for decades. ... Please trust us," he said.

The blackouts came amid consumer anger with the recent increase in power fees, including a 26 percent hike in Delhi, that government officials said were needed to pay for the steep rise in fuel costs.

The Confederation of Indian Industry said the two outages cost business hundreds of millions of dollars, though they did not affect the financial center of Mumbai and the global outsourcing powerhouses of Bangalore and Hyderabad in the south. Like many, the group demanded a widespread reform of India's power sector, which has been unable to keep up with the soaring demand for electricity as the economy expanded and Indians grew more affluent and energy hungry.

"India has outgrown its own infrastructure," said Jagannadham Thunuguntla, a strategist at SMC Global Securities.

India's Central Electricity Authority reported power deficits of more than 8 percent in recent months, and many economists said the power deficit is dragging down India's economy.

"Without power we cannot run an economy at 8 percent, 9 percent growth or whatever your ambition is," Chakraborty said.

Part of the problem is that India relies on coal for more than half its power generation and the coal supply is controlled by a near state monopoly that is widely considered a shambles.

A recent survey showed nearly all the coal-fueled plants had less than seven days of coal stock, a critical level, said Chakraborty, and many of the country's power plants were running below capacity. Government bureaucracy has made it difficult to bring more plants online.

In addition, vast amounts of power bleeds out of India's antiquated distribution system or is pirated through unauthorized wiring. Farmers, with a guarantee of free electricity that is driving many state electric boards to bankruptcy, have no incentive to conserve energy.

The power deficit was worsened this year by a weak monsoon that lowered hydroelectric generation, spurred farmers to use pumps to irrigate their fields long after the rains would normally have come and kept temperatures higher, keeping air conditioners and fans running longer.

While Indians were furious and embarrassed, many took the crisis in stride, inured by the constant - though far less widespread - outages triggered by the huge electricity deficit stymieing the development of this would-be Asian power.

"The blackout might have been huge, but it wasn't unbearably long," said Satish, the owner of a coffee and juice shop in central Delhi who uses only one name. "It was just as bad as any other five-hour power cut. We just used a generator while the light was out, and it was work as usual."

© 2012 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
22 Comments Add a Comment
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rwsmith29456 says:
Let this be a lesson for us in the USA. Besides, keeping the infrastructure up to date creates jobs.
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formerlyluvnut says:
Whoop dee doo; I've gone 10 days without power before.....in the freezing winter! Whats all the fuss?
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louiville2_2 says:
by Lerianis4 August 1, 2012 8:55 AM EDT
louiville, wake the hell up before we 'liberals' smack you awake. There are many conservatives who have been taken in by the lie of global warming as well as liberals.

If the Republicans have their way, we wouldn't go back to the Stone Ages..... we would just be choking to death on the soot-filled, can't see two inches in front of your ******* face air!
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Really? Man are you misinformed FYI it was Nixon who started the EPA, it was Reagan who signed SARA (Superfund Act) to clean up the messes. Clinton plundered the Act to go to Somalia and Hati but hey he put some wolves in Yellowstone whhho hoooo.

Lerianis4 another democrat union educated misinformed democrat getting his real education late in life...
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sjc_1 replies:
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It was Bush that allowed them to stop funding the Super Fund.
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louiville2_2 says:
by Lerianis4 August 1, 2012 8:56 AM EDT
louiville, totally wrong. The problem is that the electric companies are not REQUIRED to put X percentage of their massive profits back into improving infrastructure.

Also, 99% of power outages could be stopped simply by? BURYING POWER LINES! No more trees taking them down in bad storms.
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FYI "Underground vs. Overhead Power Lines"

"Reliability
Most measures of electric reliability focus on two metrics: the frequency with which a
customer sustains a power outage (# of power outages/year) and the duration of power
outages (minutes/year a customer is without power). Five years of underground and
overhead reliability comparisons for North Carolina's investor-owned electric utilities - Duke
Energy, Progress Energy and Dominion - found that the frequency of outages on underground
systems was 50% less than for overhead systems, but the average duration of an
underground outage was 58% longer. Because those repair times are typically much longer,
customers served by underground lines are usually among the last to have power restored.
Long term reliability is also an issue. As underground lines get older, they become less
reliable. In fact, a Maryland utility found that customers served by 40-year-old overhead lines
had better reliability than those served by 20-year-old underground lines.
Cost
Before discussing the cost of placing lines underground, it's important to understand the
difference between distribution and transmission lines. Transmission lines are high-voltage
lines carrying power from generation plants to substations. From the substations, the voltage
is reduced and sent out into neighborhoods through lower voltage distribution lines.
The cost to place new transmission lines underground is about 8 to 10 times the cost to build
overhead lines. The cost to build underground distribution lines is typically four to six times
the cost of underground distribution lines.
Placing existing overhead lines underground is also an expensive proposition. Preliminary
estimates compiled by SCE&G suggest that it would cost more than $24 billion to place its
existing overhead distribution lines underground. The North Carolina Utilities Commission
studied the cost of placing Duke Power's distribution facilities underground and found it would
cost more than $41 billion, resulting in a 125 percent increase in customer rates."

http://www.sceg.com/NR/rdonlyres/465E6534-2FFB-4069-BF84-81465AEEF887/0/%20Undergroundvs.pdf,
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sjc_1 says:
"Farmers, with a guarantee of free electricity that is driving many state electric boards to bankruptcy, have no incentive to conserve energy."

This could be a problem, if something is free, it can be used wastefully. They might restructure that to allow the farmer to decide what tax breaks they get on power, versus other goods and services they need.
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sjc_1 replies:
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"spurred farmers to use pumps to irrigate their fields long after the rains would normally have come and kept temperatures higher.."

So you have a weak monsoon making less rain with less hydroelectric, less cooling with more air conditioners and less rain so farmers pump water with free electricity. Sounds like a formula for a power failure.
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notparicular says:
In India anyone can tap into the power system without paying. All you need is muscle power and connection. Middle class people get no such break. Only the rich and their hand picked people get such break, and bring down the infrastructure. Such things may happen to us if the rich are coddled in Republican style.
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louiville2_2 replies:
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What? What a maroooon fyi it's democrats who think going back to the stone ages is good for the environment, you know global warming and all. Republicans want to come out of the darkness by turning the lights on and getting industry working all the while dealing with the deadbeats, mooches and poorly educated democrats.
Lerianis4 replies:
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louiville, wake the hell up before we 'liberals' smack you awake. There are many conservatives who have been taken in by the lie of global warming as well as liberals.

If the Republicans have their way, we wouldn't go back to the Stone Ages..... we would just be choking to death on the soot-filled, can't see two inches in front of your ******* face air!
See all 4 Replies
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unclebernies says:
Romney's legacy of outsourcing to India and China only prove that it's was only about him making money and not thinking ahead. These countries are going to continue to have infrastructure problems and hurting business.
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louiville2_2 replies:
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LOL what???? Another cheap phony shot from the left. Must be that democrat union education you have.
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marychgo says:
The U.S. is in better shape than India, but it's tragic that "small government" Republicans think it's better to give huge tax cuts to the rich that to try to bring our own infrastructure into the 21st century. Think of this story as "Coming Attractions," a preview of what we can expect from Romney, Boehner, and McConnell!
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louiville2_2 replies:
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Ummmm Mary it's those companies that own the electrical grid in the US giving the money to the government solves nothing.

OH and if having the government run the electrical grid is such a great idea then why is India doing so poorly since the Indian government own 80% of the power generation there... Hmmmmmm?
Lerianis4 replies:
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louiville, totally wrong. The problem is that the electric companies are not REQUIRED to put X percentage of their massive profits back into improving infrastructure.

Also, 99% of power outages could be stopped simply by? BURYING POWER LINES! No more trees taking them down in bad storms.
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matt6052 says:
Amazing that a spike of 26% in prices would cause a system overload.
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sjc_1 replies:
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I don't think the price spike caused the overload. Economics says that an increase in price would cause a decrease in usage.
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tmittelstaed says:
The reason India has been such an attractive location to outsource to is the incredible amount of government subsidization of the Indian economy throughout all sectors. This subsidization has allowed them to reach these 8 to 9 percent economic growth levels. But like any long term subsidization, it isn't sustainable.
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Lerianis4 replies:
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Actually, yes, it is sustainable. The United States has been 'subsidizing' companies with tax breaks for years now.

India is just more honest and open about what they do.
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