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Time Period for Financial Closure of Energy Companies Extended to 5 Years

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Time Period for Financial Closure of Energy Companies Extended to 5 Years
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September 8: Promoters of energy companies have been granted permission for financial closure five years after obtaining the license.

Prior to this, the energy companies had to complete their financial closure within three years of obtaining their license. However, the government decided to amend the law in order to promote private sector in power production.

According to the Electricity Development Department, the government  recently amended the Directives related to Hydropower Project License 2075 to give more time to the promoters for financial closure.

Director General of the department Navin Raj Singh says that the law has been amended to promote private sector’s investment in energy production.

“Financial closure, return of deposits and other rules have been amended in favour of the promoters,” said Singh.

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