The government has set a target of raising its renewable energy generation to 175 gigawatt by 2022, around five times current usage, to supply power to its 1.3 billion people and fight climate change.
The government push, personally monitored by Prime Minister Narendra Modi, has prompted companies to bid aggressively for solar and wind projects, pushing tariffs low enough to challenge power generated by fossil fuels such as coal over the long term.
In an auction conducted by state-controlled Solar Energy Corporation of India (SECI) for various wind projects totaling 1 gigawatt, five companies separately quoted a tariff of Rs 3.46 ($0.0519) per unit to win the projects.
"After solar cost reduction below Rs. 3/unit, wind power cost down to Rs 3.46/unit through transparent auction," coal, power and renewable energy minister Piyush Goyal said in a tweet on Friday.
Mytrah Energy, part of London-based Mytrah Group, Ostro Kutch Wind, backed by British private equity firm Actis, and Inox Wind Infrastructure won contracts for 250 megawatts (MW) each.
Green Infra Wind Energy, majority-owned by Singapore-based Sembcorp Industries Ltd, won a contract for 249.90 MW and Adani Green Energy, part of billionaire Gautam Adani's infrastructure group, was awarded a 50 MW project, according to a senior SECI official and a bid document seen by Reuters.
The companies were not immediately available for comment.
($1 = Rs 66.6850)