We report on the formation of UV emitting Si nanoclusters (NCs) in Si, using a two stage Au implantation technique. These Si NCs, with an average size of 2 nm, show photoluminescence at room temperature, over a narrow band of about 100 meV with a peak of emission near 3.3 eV. With emission lifetimes in the range of 1.5-2.5 ns, the transitions seem to come from excitonic recombinations across a quasi-direct gap. Since the structures are below the surface, there is no adverse effect of oxidation resulting in a shift in emission wavelength. On the other hand, an annealing at 500 °C has been found to result in a significant increase in the emission intensity. This is due to localized plasmon induced electric field enhancement in Au nano-islands in the vicinity.