India's Power Problems

Coverage from the Financial Times on the Indian crisis:

- Anil Ambani, the head of Reliance Power warns that "our version of the U.S. subprime crisis"

- Energy networks need fresh investments, but the banks are already overexposed to energy companies in frail health. Debt laden energy companies and frail financial industry are in a perilous embrace.

- The rich are investing heavily in power plants and generators, but resources and quality grid systems are in need. Coal India, 80% of which is owned by the Indian government, is inefficient  and fails to meet regulatory and environmental clearances. Despite owning 7% of the world's recoverable coal reserves, Coal India spent $5bn on importing cool.

- According to a director at StanChart, half of new credit went to infrastructure in power from 2008 and 2011. Now $500bn of loans to power sector is at risk. 90% could default.

- Only two out of India's states are not loss-makers, and cannot pay producers or invest in distribution and transmission.