The Reserve Bank of India (RBI) will now regulate India Infrastructure Finance Company (IIFCL). The Union Cabinet approved a proposal in this regard.The decision will increase the authorised capital of IIFCL to Rs 5,000 crore from Rs 2,000 crore, with a proviso that it may be further increased to Rs 8,000 crore with the approval of the Finance Minister. IIFCL provides long-term debt for infrastructure projects. After reviewing its performance, the Economic Advisory Council to the Prime Minister had advised that it should be placed under the regulatory oversight of the RBI as a financial institution, such as Nabard, SIDBI, Exim Bank or National Housing Bank. The increase in authorised capital would enable IIFCL to expand its financial assistance to the infrastructure sector and meet the needs of increased capital adequacy ratio.Meanwhile, IIFCL has lined up proposals worth Rs 3,600 crore for take-out financing. The company is awaiting the Cabinet's approval for the tweaked norms for take-out financing. Once approved, IIFCL would disburse the Rs 3,600 crore in less than a month. IIFLC targets disbursement of Rs 7,000 crore through take-out financing. A take-out agreement helps the first lender go ahead with lending to an infrastructure project, as he knows he would keep the loan only for a few years.