The high-powered board cleared a proposal by Italian consumer durables manufacturer Merloni to buy out the stake on its Indian joint venture partner, FIPB sources said.

The venture, which manufactures water heaters and geysers, will become a wholly-owned subsidiary of Merloni after the buy out.

The Italian company will pump in Rs 13 crore to increase its stake from present 74 per cent to 100 per cent, the sources said.

The FIPB also cleared a proposal by Hooghly Shipbreakers Ltd to set up a shipbreaking facility at Gujarat, subject to adherence to pollution norms of central and state pollution control boards.

Albert Overseas Inc., British Virgin Islands, would pick up 51 per cent stake in the venture.

Another proposal by Modis Professional of USA to set up a wholly-owned software venture in the country with a FDI of Rs 12crore also got the go ahead of the board.

Fina India's proposal to increase the stake of its parent company, Fina Fareast, Singapore from 70 per cent 100 per cent was also approved by the FIPB.

The proposal has been cleared subject to condition that Fina Fareast would divest upto 26 per cent in the venture within five years as per the existing guidelines.

Fina India blends and markets lubricants in the country.

Among other proposals cleared by the board was that of Galderma Pharma of Switzerland to set up a subsidiary to manufacture dermatological products.

Galderma would bring in FDI of Rs two crore to pick up 74 per cent in the venture.

It also recommended proposals of Terumo of Mauritius to set up a company for manufacturing bags for blood and other related products and Korin India to issue non-convertible preference shares worth Rs 10.5 crore.

Terumo would hold 74 per cent stake in the venture, investing about Rs 20 crore, the sources said.

A proposal by SS Infotech to set up awholly-owned software venture in the country at a investment of Rs 40 lakh was also approved by the board.