The general purpose of earthing system is to protect life and property in the event of 50 Hz faults (short-circuit) and transient phenomena (lightning, switching operations).
The question of how a system shall be earthed is governed by the Indian Electricity Act
The choice of earthing to one point on each system is designed to prevent the passage of current through the earth under normal conditions, and thus to avoid the accompanying risks of electrolysis and interference with communication circuits. Earthing may not give protection against faults which are not essentially earth faults (i.e.: when a phase conductor on an overhead-line breaks).
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