Chennai: Tamil Nadu Government today (May 31, 2004) announced reduction in power tariff to the domestic consumers, costing the exchequer Rs 910 crore.

Announcing the reduction in the tariff, Chief Minister Jayalalithaa said in a statement that the tariff was being rolled back to the levels prevailed on December 1, 2001, when it was revised upwards.

The reduction would come into effect from June 15 and would benefit over 116.57 lakh families in the State.

Jayalalithaa said that her Government would directly pay a subsidy of Rs 910 crore to the State electricity board.

"The willingness of the State Government to pay the subsidy will be indicated to the Tamil Nadu Electricity Regulatory Commission with the request to reduce the tariff," she said.

A family using 250 units of electricity per month or 500 units bi-monthly was now required to pay Rs 720 per month or Rs 1,440 bi-monthly. But after the reduction, they would have to pay only Rs 450 per month or Rs 900 bi-monthly, she said, adding that the reduction would be "substantial and provide great relief to the consumers".

"No other State in India provides such relief to all families in the domestic category in order to protect them," she claimed.