The cabinet committee on economic affairs (CCEA) Friday approved Essar Power Ltd's (EPL) proposals to become a holding company and to infuse up to Rs.80 billion as equity.

The equity will be raised by issue of additional shares and by acquisition.

The committee has also approved EPL's plans to increase the foreign direct investment up to 100 percent.

Besides, the government has given its nod to EPL's downstream investment plans in permitted areas like power sector and coal mining for captive consumption for power projects.