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When a consortium led by Abu Dhabi's National Energy Company (Taqa) announced in March it was acquiring Jaiprakash Power Ventures' two hydroelectric plants that can produce 1,392 Mw, it was an opportunity Indian power producers missed for consolidation.

Earlier in February, Singapore's Sembcorp Utilities bought a 45 per cent stake in a 1,320 Mw thermal power plant being built by NCC Power Projects at Nellore in Andhra Pradesh. Last December, French player GDF Suez acquired a 74 per cent stake in a 1,000 Mw thermal power project of Meenakshi Energy in Andhra Pradesh.

But as soon as Jaiprakash Power Ventures' plants were back on the block in July with Taqa cancelling the deal, Reliance Power, Adani Power and JSW Energy joined the race. This time, Manoj Gaur, promoter of Jaiprakash Power Ventures, threw in another plant. Reliance Power bought the three plants with a combined capacity of 1,800 Mw.

"The new government and its policy initiatives have made established power companies optimistic. The rally on the stock markets has also improved their ability to raise funds," said Bhargav Buddhadev, an analyst with Ambit Capital. Over the past decade many infrastructure companies diversified into power, seeing an emerging opportunity. Some of them now want to get out.

For instance, GMR Infrastructure has been selling power projects to trim debt. It has sold a natural gas power plant in Singapore. Now it has put Emco Energy, a 600 Mw thermal power plant in Maharashtra, up for sale. Lanco Infratech has put a 1,200 Mw coal-fired power plant in Udupi on the block.

Source-On Request