GMR Infra could never make good on its Intergen purchase with IFRS brining threat of on balance sheet recognition of $12-13 billion of debt, but the latest news is that Tata Power may buy that 50% stake off GMR Infra's hands, even as the next round in the India Infrastrcuture story is set to begin after equity investors dumped the big play infrastructure stories in the August series exits. Tata Power, never a darling of the indian exchanges may yet find a new leverage a source of brand recognition as investors spread out their canvas for a selection of the best plays to keep in their portfolio

(Reuters) - Tata Power Ltd is in talks to buy a 50 percent stake in U.S.-based power utility InterGen NV for $1 billion to $1.2 billion, a source with direct knowledge of the situation said on Thursday.

Tata Power plans to buy the stake from GMR Infrastructure(GMRI.BO), an Indian builder of roads and airports.

GMR declined comment. A spokeswoman for Tata Power was not immediately available for comment.

GMR Infrastructure, based in Bangalore, bought 50 percent of InterGen in 2008 for $1.1 billion from a fund owned by American International Group Inc. The rest of InterGen is owned by Ontario Teachers' Pension Plan.

News reports earlier this month had said China Huaneng Group, the nation's biggest electricity producer, was in advanced talks to buy a 50 percent stake in U.S.-based power utility InterGen NV for about $1.2 billion.

InterGen is a power generation firm and owns 12 power plants in the United Kingdom, Australia, the Netherlands, Mexico, and the Philippines. The company's plants have a generation capacity of more than 8,000 megawatts.

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