Coronavirus impact: Power demand falls 20%, discom revenues to be hit

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Following the sharp dip in the energy demand owing to the continuing industrial and commercial shutdown to contain the spread of pandemic coronavirus, the revenue of state power distribution companies (discoms) is expected to be adversely affected and this wll further worsen their already precarious financial condition.


At a pan-India level, the power demand has already fallen by more than 20 per cent to 1,21,937 megawatt (mw) from 1,54,045 mw, while the power supply also crashed to 29,750 lakh units (LU) from 35,650 LU.


All India Power Engineers Federation (AIPEF) chairman Shailendra Dubey said the energy demand had fallen considerably in the country, which posed a serious challenge to the commercial viability of these discoms, most of which are state owned and operated.


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“We have written a letter to Prime Minister Narendra Modi and the union energy minister seeking moratorium on the payment under the power purchase agreements (PPA) signed with the power generating companies during the entire lockdown period, since the energy requirement has gone down significantly and these payments are elements of a fixed cost for

Indian LNG importers issue force majeure notices as gas demand slumps

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Indian liquefied natural gas (LNG) importers have issued force majeure notices to suppliers as domestic gas demand and port operations are hit by a nationwide lockdown to curb the spread of coronavirus, industry sources told Reuters.


Any reduction in purchases by India, Asia’s third largest economy and one of the top importers of the super-chilled fuel, are likely to further hit prices, already battered by a drop in demand in China, where the virus emerged.


India imposed a sweeping lockdown of its 1.3 billion people on Wednesday for 21 days, and is only allowing the supply of essential commodities. The move prompted several industries to shut operations and some ports in the country to declare force majeure.


This in turn is spilling into the market, several of the sources said.


ALSO READ: Coronavirus LIVE: India cases top 600 as govt counts financial cost



India’s top gas importer has served a force majeure notice on Qatargas and is seeking delayed delivery of cargoes, two sources said. “Gas demand has reduced drastically and it is likely to go down further,” a source with gas utility GAIL

Could debt settlement get your small business out of the debt trap?

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Many people that start their own small business start off with very high hopes and a real feel of excitement.

This is not surprising, as having your own business means the possibilities are endless when it comes to financial freedom, career options, and quality of life. However, some people do find that their business quickly start accruing debt and is some cases this debt can get out of hand.

If you have a lot of debt and your small business is struggling as a result, there are various options you can consider to try and relieve the situation. If you leave things unattended, the debt problem will continue to spiral. This could result in you going out of business altogether. This is why you need to ensure you take action to sort out your business debts if they are causing a massive problem for you and your business.

How debt settlement may help

 There are various solutions you can look at if you have a huge amount of unmanageable small business debts and one of the options is debt settlement. This is where you negotiate with your creditors and make a reduced payment on the amount you owe after

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