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Energy Crisis

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Energy Crisis
I saw India's power problem up close less than two weeks ago when the house in which I was staying in Delhi almost caught fire.

The family hosting me was one of India's burgeoning middle class. They have air-conditioning and electrical goods such as fridges and televisions as they enjoy the spoils of their success.

Unfortunately, it also means that their electricity needs far exceed the limitations of the creaking power grid that serves their northern city suburb.

As we sat in the living room, the overloaded power meter popped, unleashing a fire that fortunately was contained before too much damage was done.

And while this mix of high consumer demand and weak infrastructure was played out on a small domestic scale, over the past two days the same problems have paralysed vast chunks of the world's biggest democracy.

Economy's life and blood
On Tuesday, almost half the country's 1.2 billion people and hundreds of thousands of businesses and various essential service providers were left without power after India's northern and eastern grids broke down.

A similar breakdown hit nine states in northern India on Monday.

There are now worries that the power crisis may stifle India's growth.

"Energy is like blood in your veins. It is as vital as that to the economic growth," Rajiv Kumar, secretary general of the Federation of Indian Chambers of Commerce & Industry (FICCI), tells the BBC.

"If there is a shortage of blood, you can't function - similarly if there is a shortage of energy, the economy can't work."

'Hide behind the numbers'
India's Ministry of Power has set a goal - Mission 2012: Power for All.

However, given the current supply and demand situation in the country, it seems highly unlikely that the objective will be achieved.

Continue reading the main story

Start Quote

There are spikes in voltage happening - and that creates havoc”

Amit Kapoor
Institute for Competitiveness
India currently has an installed power

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