She also doubled the old age pension from Rs 500 to Rs 1,000, increased maternity leave for government staff to six months from three months and financial assistance to fishermen during fishing ban period from Rs 1,000 to Rs 2,000 as she signed relevant files soon after being sworn in.
Jayalalithaa hiked marriage assistance for poor people from Rs 25,000 to Rs 50,000. The 20 kg free rice per month would be available to families who had opted for rice cards.
In a war of freebies, both the AIADMK and the DMK had announced a slew of populist measures in their manifestos ranging from providing rice to mixers and mineral water and laptops.
In her first media interaction after taking over, she said she would visit Delhi to meet Prime Minister Manmohan Singh.
Asked whether she would meet Congress President Sonia Gandhi, who had greeted her on her poll victory, Jayalalithaa avoided a direct reply saying the "details of my visit will be known to you soon."
Gandhi's phone call to Jayalalithaa had led to speculations about its significance but the Congress had maintained that it was a courtesy call extended to all the leaders who emerged victorious in the recent elections to five state assemblies.
Jayalalithaa said her priority was to restore law and order and bring down prices of essential commodities.
Alleging "total collapse" of administrative machinery during the five-year DMK rule, she said Tamil Nadu had now been saved from an "autocratic rule".
"People need not have any apprehension about their safety and security hereafter. I assure you all that my endeavours will be to provide security to all," she said.