State-owned telecom service provider Bharat Sanchar Nigam Ltd on Thursday said it has slashed its local and STD rates by 50 per cent allowing rural users to make calls at 40 paise per minute.

BSNL wireline customers would be able to call anywhere in the country through fixed telephone at Rs 0.40 to Rs 0.60 per minute, BSNL said in a statement.

"Rural customers who are paying 80 paise per minute can now call anywhere in India at 40 paise per minute and customers who are paying Rs 1.20 per minutes can now call anywhere in India at 60 paise per minute.

Moreover, all BSNL wireline customers would be given STD facility without any additional security deposit.

The new tariff had already been implemented throughout the Country from March 1, 2009.

Last year in the month of June, 2008 BSNL had reduced the call rates for intra circles calls to its fixed line network by 50 per cent and accordingly all intra circle calls to BSNL fixed/WLL could be made for duration of 120 second per pulse.