Power supply was restored in most parts of India’s financial capital after its worst blackout in decades disrupted transport networks and briefly hit trading volume in bond markets.
Mumbai, home to India’s biggest stock exchanges, financial regulators and the central bank, witnessed a power failure at around 10:00 am. Power tripping—or an overload in the circuit that forces the system to shut down automatically—was the reason for the grid’s collapse, according to local power utility Tata Power Co. Ltd.
The city of 20 million people accounts for about 6% of the $2.9 trillion economy. While Mumbai has largely been immune to daily power outages that plague large swathes of the nation, a long and widespread blackout in the capital of India’s most industrialised state would make it harder for Prime Minister Narendra Modi to revive an economy that shrank 24% in the quarter ended June.
“In my 18 years in Mumbai, I haven’t come across such a widespread disruption right in the middle of the busiest time for equity markets,” said Chokkalingam G., chief investment officer at Equinomics Research & Advisory Ltd. in Mumbai, whose home still didn’t have power at 4:00 pm. “Especially during a pandemic a recurrence of such an event isn’t good.”
Power supply was restored to essential services such as trains and hospitals by about 2:00 pm, according to local authorities.
Here are the latest news updates on the Mumbai power cut situation: