NEW DELHI: The government on Wednesday allowed NLC India to invest Rs 7,000 crore in its wholly owned arm NIRL.

The decision was taken by the Cabinet Committee on Economic Affairs under the chairmanship of Prime Minister Narendra Modi.

"The Cabinet Committee on Economic Affairs... has approved a special exemption for NLC India Ltd (NLCIL) from the prevailing investment guidelines applicable to Navratna Central Public Sector Enterprises (CPSEs).

"This strategic decision enables NLCIL to invest Rs 7,000 crore in its wholly owned subsidiary, NLC India Renewables Limited (NIRL) and in turn NIRL investing in various projects directly or through formation of Joint Ventures, without the requirement of prior approval under the existing delegation of powers," an official statement said.