Section 7
Security
of Ocean Thermal Energy Conversion Enactment 2024
Before the grant of any licence, the Commission may require a security, either in the form of cash or bank guarantee as the Commission may specify, to be furnished for the due observance of the terms and conditions of the licence.
(2)
The amount of the security shall be based on the licensee’s exploration, construction or operational costs, as the case may be, as determined by the Commission and such amount may be reviewed from time to time.
(3)
If a licence is revoked under section 10, the security shall be forfeited as the Commission deems fit.
(4)
For the purpose of this section, “operational costs” means all costs calculated by the Commission to be the costs of operating the facility or plantship including wages, costs of fuel, spare parts, labour charges and lubricants but not including capital costs or loans.