DuPont has sought an exemption from clause which required it to divest 26 per cent stake within five years. However, the board on Monday removed the divestment clause as the US-based chemical giant proposed to bring in proprietary technology into the country, government sources said.

The FIPB could also open the gates for other foreign companies which have similar divestment clauses attached to their approvals. FIPB had been deliberating on the DuPont proposal for quite some time.

DuPont's proposal was among the 39 proposals cleared by the FIPB at its meeting on Monday. The board cleared investment proposals totalling Rs 175 crore.

Other proposals cleared included Total SA of France, which applied for a green signal to pick up 24 per cent equity in Noble Synthetics. The FIPB also okayed the French oil major's proposal to increase the equity base of its wholly-owned subsidiary in the country, Total Lubricants India by infusing an additional Rs 19 crore.

The total paid up equity of Total Lubricants would go up to Rs 35 crore from existing Rs 16 crore following the fresh infusion, sources said.

Malaysia-based TNB Repair and Maintenance has been allowed by the FIPB to set up a 11 MW power generation project near Trichy in Tamil Nadu at an investment of Rs 100 crore. The Malaysian company would hold 99.99 per cent stake in the venture named Tenaga BK Power, sources added.

Vetcare Artech and Teragonchenic were given the nod by the board to set up two separate ventures in the country for producing animal feed and veternary products. Both the companies would hold 51 per cent stake in their respective joint ventures and would infuse Rs 27 crore per head for the purpose.

Raycell Applied Technologies has also been permitted to expand the equity base of its 100 per cent subsidiary by Rs 1.2 crore. The existing equity base of the venture, which is an internet service provider, is Rs 31.22 lakh.

FIPB allowed Hewlett Packard hive off its measurements division into a separate wholly-owned subsidiary. The new company would be formed at an investment of Rs 43 lakh and would be engaged in the business of producing testing measurement equipment, electronic component and measurement devices, sources stated.

Applications by Synclair Edge Technologies and Cal2cal were also shown green signal by the board with regard to their proposals, sources stated. Both the companies would set up wholly-owned subsidiaries by infusing Rs 10 lakh and Rs 50 lakh respectively.

Trackmail India has also been allowed by the board to provide E-mail services through a 100-per cent subsidiary. The company would be investing Rs 5 crore for the purpose, sources said.

UK-based Commonwealth Development Corp-promoted Ortel Communications would was permitted to set up a joint venture with Orissa Electric Corporation for building hybrid fibre co-axial communications network, sources said. The British firm would control 49 per cent stake in the project.

In the tourism sector, Far Hotels has been allowed to join Handswith Le Meridien for constructing a five-star hotel and convention centre. Kyungbokgong Hotel of Korea has also been allowed to set up a wholly-owned Korean restaurant service in Chennai ar an investment of Rs 35 lakh, sources added.

The board allowed Nestle to market its instant tea in the domestic Indian market. The company is currently exporting the entire produce from the unit.

FIPB however, deferred decisions on proposals put in by Honda Siel and BMG Crescendo, sources said.