In the recent bid of 1000 MW for solar projects, the TN bidders reached to as low as Rs. 5.97 per unit with an annual escallation of 5%. However, the subsequent meetings with the developers for finalising the PPA, TENGEDCO has come out with a workable tariff of Rs 6.48/kWh. This tariff is arrived considering the recent levelised tariff announced by CERC as Rs. 8.75/kWh and Rs. 7.87/kWh considering accelerated depreciation benefits. TENGEDCO has arrived to this tariff considering 5% escallation for 20 years on a base tariff of Rs. 6.48/kWh. TN has considered the accelerated depreciation benefits in arriving at this tariff. Several developers are still considering this tariff as un-attractive tariff. Tn is expected to come up with a fresh tender once the PPAs for the present tariff are finalised. The remaining capacity will be again put for reverse bidding to discover the tariff.