Electrical panel in closet

I have a 40A electrical main panel with fuse plugs in the non walk-in master closet. This is a 1950 vintage house with K&T ungrounded wiring.
I wanted to update K&T with Romex and ground, new outlets, GFIs, the whole works updated. Also replace the existing panel with new panel and circuit breakers. Is panel location in closets still allowed or do I need to find a new location for it?
One possible location is to turn around the panel so it face the hallway. What is a good way to hide this pane, hang a picture over it?
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Depends on your local codes, and the inspector, check with your power supplier or local city hall. But not too many places allow panels in small closets in new construction. Usually you need about 3 feet open floor space in front of the panel
Retrofits may be allowed though. But you may not even have the space for a larger panel. Assuming you are going to be upgrading to at least a 100A service (recommended)
If you have to turn it to the hallway you can buy panels that have flush mounted finished doors that can be painted and just about disappear.
While you could always hang a picture over it, don't tell anyone, as that is against any codes.
AMUN
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Turning the panel around so that it faces the hallway is a good idea. You need to have 36" of unencumbered clearance in front of the circuit breaker panel. GE makes a white panel for these types of exposed locations. I think that Lowes sells them. You could hang a picture over it when you are finished with the installation.
John Grabowski http://www.mrelectrician.tv
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