World Bulletin / News Desk
Half of India's 1.2 billion people were without power on Tuesday as the grids covering a dozen states broke down, the second major blackout in as many days and an embarrassment for the government as it struggles to revive economic growth.
Stretching from Assam, near China, to the Himalayas and the deserts of Rajasthan, the power cut was the worst to hit India in more than a decade.
Trains were stranded in Kolkata and Delhi and thousands of people poured out of the sweltering capital's modern metro system when it ground to a halt at lunchtime. Office buildings switched todiesel generators and traffic jammed the roads.
"We'll have to wait for an hour or hour and a half, but till then we're trying to restore metro, railway and other essential services," Power Minister Sushilkumar Shinde told reporters.
More than a dozen states with a total population of 670 million people were without power, with the lights out even at major hospitals in Kolkata.
Shinde blamed the system collapse on some states drawing more than their share of electricity from the overstretched grid. Asia's third-largest economy suffers a peak-hour power deficit of about 10 percent, dragging on economic growth.
"This is the second day that something like this has happened. I've given instructions that whoever overdraws power will be punished."
The country's southern and western grids were supplying power to help restore services, officials said.
The problem has been made worse by weak a monsoon in agricultural states such as wheat-beltPunjab and Uttar Pradesh in the Ganges plains, which has a larger population than Brazil. With less rain to irrigate crops, more farmers resort to electric pumps to draw water from wells.
Power shortages and a creaky road and rail network have weighed heavily on the country's efforts toindustrialize. Grappling with the slowest economic growth in nine years, Delhi recently scaled back a target to pump $1 trillion into infrastructure over the next five years.
Major industries have dedicated power plants or large diesel generators and are shielded from outages -- but the inconsistent supply hits investment and disrupts small businesses.
High consumption of heavily subsidized diesel by farmers and businesses has fuelled a gaping fiscal deficit that the government has vowed to tackle to restore confidence in the economy. But the poor monsoon means a subsidy cut is politically difficult.
On Tuesday, the central bank cut its economic growth outlook for the fiscal year that ends in March to6.5 percent, from the 7.3 percent assumption made in April, putting its outlook closer to that of many private economists.
Germany’s ambassador to Ankara says German companies operating in Turkey should think about tomorrow
After months of disagreement, OPEC members last week hammered out a deal to cut oil output for the first time in eight years.
Ali Shareef al-Emadi predicted growth of 3.4 percent in 2017, in line with an International Monetary Fund estimate and up from a projected 3.2 percent this year.
"Many citizens in advanced economies are facing heightened uncertainty, lamenting a loss of control and losing trust in the system," Carney said in a speech at Liverpool's John Moores University.
European stock markets are also set for a weak start, with Italy underperforming as investors brace for turbulence and political crisis in the euro zone's heavily indebted third-largest economy.
The euro tumbled on Monday after Italian Prime Minister Matteo Renzi said he would resign as he conceded defeat in a referendum over his plan to reform the constitution
Rouhani's 2017-2018 budget is based on oil prices of $50 per barrel, up from $40 last year, with a focus on unemployment, water resources, railways and the environment.
Turkish parliament has already ratified the deal on construction of ‘TurkStream’ natural gas pipeline
The September rate was revised to 9.9 percent from the 10 percent first given last month.
Many analysts had expected the producers' cartel to fail to reach a deal as major players like Iran, Iraq and Saudi Arabia remained divided ahead of the meeting.
The report, which collects views of economists, business contacts and others in the 12 Federal Reserve districts in preparation for the monetary policy meeting next month, noted improved retail sales and home construction in most regions.
If the cartel does not reach a deal to cut output, prices could fall below $40 a barrel
European air travel giant Lufthansa has been battling its own pilots over pay and conditions for more than two years.
Failure to get an accord on Wednesday could send oil prices tumbling and deal a further blow to the credibility of the 56-year-old Organization of the Petroleum Exporting Countries.
Around midday, shares in Italian lenders Unicredit and Banco Popolare were down 4 percent compared with Friday's closing levels.