Raghunath thank you for relaising the importnace of the project,My friend has been loosing valuable raw material and production efficiency due to this outage.
He has no space to put a generator for now until he shifts to a bigger place.He suspects the contract labourers are just enjoying life at his cost :-(

There was one suggestion of using an UPS (APC)
I too thought of using the communication port on the UPS could serve as signaling for finding the outage and also be able supply power to my system.

so for a i2c I need to develop a protocol structure ?
Thats what I understood from some DOCS I read from Maxim and Philips

Can it be done using 89c51 /52 I have a couple of them

Also I nedded to know does the RTC need a separate crystal of 32,768Hz ?

Instead of a relay what could I use to signal the outage...

Thank you
Deepak