New Delhi, March. 1 :    New Delhi, March. 1:  Videsh Sanchar Nigam Ltd today slashed internet leased line rates by 40 per cent for non cable head stations. It also announced a steep reduction and rationalisation of co-location and web hosting tariffs. The reduction in tariff will benefit the users in small towns. As per the new scheme, VSNL will provide shared and dedicated internet local area network ports with a 100 megabits per second (Mbps) speed to customers with servers located in VSNL. Earlier, it announced an about 70 per cent cut in internet leased line tariffs from January 1, at the cable head stations at Mumbai and Cochin. Under this scheme, the rate of a 2 Mbps internet leased line which used to cost Rs 41.8 lakh was brought down to Rs 12.5 lakh at Mumbai and Cochin. The corresponding rates for 2 Mbps IPLC link which used to cost Rs 163.68 lakh on optical fibre cable to the US, was reduced to Rs 40 lakh at Mumbai and Cochin. The leased line linked tariffs at other stations, served by satellite or terrestrial, was fixed at higher levels.