Hernessing the power of 60 million customers, state-owned Bharat Sanchar Nigam Ltd (BSNL) will on Thursday slash long-distance calling rates by over 40 per cent. Making a call from a BSNL phone will cost Re 1 to Rs 1.20 for every minute, regardless of the distance. This new rate, likely to be launched this Diwali, will effectively make tariffs for domestic long distance calls similar to local call charges. The highest per-minute tariff for a STD call at present is Rs 2.40 per minute.

The new rates are set to be officially announced on Thursday and will apply to all customers of BSNL. The company provides services in 23 telecom circles across the country, except in Delhi and Mumbai. For Delhi and Mumbai-based customers, state-owned MTNL had announced only last month that all calls will be charged as per local calling charges.

BSNL’s tariff cut is also likely to be accompanied by a massive reduction in rental for its OneIndia scheme. The rental for this plan is being reduced from Rs 225 to Rs 180 a month, making it vastly more affordable. Rs 180 is also the rental paid at present by subscribers to BSNL’s ‘standard package’.

A BSNL official said that though there is no plan for a single all-India calling rate, but since the highest STD rate is already as low as Rs 2.40 for every minute, a ”substantial difference” could bring rates close to Re 1 to Rs 1.20 per minute.