Tesla
Certainly you are correct about primary distribution that leaking insulation would cause arcing in HV conductors but you forget that a large part of the distribution grid is secondary at 400 to 440 volts. I can attest there is a lot of insulation leakage there. Mostly the heating of the soil is load, not arcing faults. You really want to be careful where you walk in Delhi on a rainy day as i am told that the ground can tingle. From what I saw October of 2010 a lot of open (taped) splices on the ground. Regularly saw feeder and service conductors on the road for a foot or 2 before entering street distribution kiosks. Not uncommon to see the kiosks have been broken into and fuses and other metal bits have been stolen. Yes they are hemorrhaging electricity.
