While the reasons that Rush cites are valid, there is another source of this failure. India has an extreme problem with bureaucracy far beyond just the desire to reduce coal usage. This is a problem here because every power pole in India has illegal power-taps that the political structure (read bureaucracy) prevents from being removed. It is speculated that illegal use exceeds paid use 3 to 12 fold. It becomes very difficult to have fault-tolerant systems when your paid use cannot support the basic system. Any resemblance between this and how socialism can run out of other people’s money is purely a figment of your imagination.
Check my post #17 about the problem with coal. Because of low monsoon the hydro electric plants in north India were running on low water reserves and the problem was compounded because of sudden surge in neighboring states illegally drawing excess power.