Mumbai As India positions itself as a major global hub for solar power and more money flows into the industry, smaller players are likely to emerge as attractive targets for companies looking to gain scale. The government is targeting a 20-fold rise in sun-power generation to 20 gigawatts (GW) by 2022 as it looks to counter an average 9% power shortfall that shaves about 1.2 percentage points off annual economic growth.

"Consolidation is likely to happen in the industry over the next five years," said Santosh Kamath, Partner and and Lead Renewables, Energy and Natural Resources at KPMG. "Smaller players will find it difficult to be competitive. Scale will become important."