Fiat of Italy would infuse an additional paid up capital of Rs 1,090 crore in its wholly-owned Indian subsidiary for manufacturing new car models like Sienna and Palio, taking up its total investments to Rs 2,000 crore, official sources said.

The Fiat proposal would be put up before the Cabinet Committee on Foreign Investment (CCFI) for final approval since the total infusion would exceed the cap of Rs 600 crore.

US-based Fedders International's proposal to set up a new venture with an initial equity capital of Rs 8.5 crore for making state-of-the-art room airconditioners was also approved by the board. The board has given approval for the company to take the total investment to Rs 34 crore over a period of time. Entertainment company Polygram of Netherlands will buyout the 49 percent stake held by Mumbai-based Patel group for a consideration of Rs 30 crore making the existing venture, Polygram India Limited, a 100 per cent arm of the Dutch firm.

BTP India will buyout the 26 per cent stake held by RPG group's Kec International in the chemical company for an investment of Rs 10 crore. The company specialises in biocides and other industrial chemicals. Netherlands-based Rothschild Continuation Holding AG's proposal to undertake only advisory services was cleared by the board. It will also be allowed to issue redeemable preference shares for US $2.9 million.

Loral Space and Communications Systems of USA will set up a media software company with 49 per cent equity along with the K K Modi group, which would hold the majority stake, with initial investment of Rs 4.25 crore which would go up to Rs 85 crore in a three-year period.

LG Soft India Private Limited, a 100 per cent arm of LG Electronics, have been allowed to issue zero coupon optionally convertible shares of Rs 16 crore.Shanxi of China will pick up a five per cent stake in the new venture Balaji Coke India Private Limited as per another proposal cleared today. Rediff Communication has been permitted to pay royalty to its foreign partners Dentsu, Young and Rubicon for a further period of three years.