New Delhi, Feb 24 (IANS): The wind power sector in India discovered the record low tariff of under Rs 3.50 per unit on Friday following the first ever auction by the government for setting up wind projects.

"Wind is a gift to mankind by environment & the historic low cost of Rs 3.46/unit wind power shows our commitment to leverage clean energy," Power and Renewable Energy Minister Piyush Goyal said in a tweet.

"After Solar cost reduction below Rs 3/unit, Wind power cost down to Rs. 3.46/unit through transparent auction. A green future awaits India," he said in another tweet. 

The five companies, which presented winning bids that started at Rs 4.47 per unit on Thursday afternoon, are Mytrah Energy, Inox Wind, Green Infra, Sembcorp India and Ostro Kutch Wind.

The winning companies will set up individual projects, each of 250 MW capacity. 

State-run Solar Energy Corp of India (SECI) conducted the auctions and is the designated agency for implementating the wind power scheme. It had floated tenders last year for setting up wind projects with cumulative capacity of 1,000 MW to supply power to non-windy states.

According to SECI officials, the rate of wind power ranges between Rs 3.9 per unit in Tamil Nadu and Rs 5.5 per unit in other states.

The scheme provides that no separate funding shall be provided by the New and Renewable Energy Ministry to SECI for setting up this 1,000 MW wind power capacity.

State-run Power Trading Corp. is the agency for purchase and sale of wind power and will enter into power purchase agreements (PPAs) for 25 years with the successful bidders.