Tamil Nadu to Subsidise E-Scooter Purchases by Some Gig Staff

India’s southern state of Tamil Nadu will provide a subsidy of Rs. 20,000 to pick out gig staff to purchase e-scooters, a minister stated on Friday, as extra younger individuals join with on-line platforms to ship meals and groceries.

Gig staff, or these outdoors conventional employer-employee relationships, are set to play a key function on this planet’s fifth-biggest economic system, spurred partly by excessive unemployment after COVID-19 pandemic curbs fuelled progress within the sector.

Tamil Nadu can also be introducing an insurance coverage scheme for practically 150,000 gig staff to compensate for unintentional deaths and incapacity, its finance minister, Thangam Thenarasu, stated whereas unveiling the finances.

“A brand new scheme can be launched …. to supply a subsidy of Rs. 20,000 every to 2,000 internet-based service staff to purchase a brand new e-scooter,” the minister stated, including that staff registered with a state welfare physique could be eligible.

Additional particulars of the scheme can be revealed later, Labour Secretary Veera Raghava Rao informed Reuters.

The costs of electrical scooter maker Ola’s merchandise begin at Rs. 79,999, whereas these of rival Ather promote from Rs. 99,999.

The state can even arrange lounges for the usage of such staff in massive cities, akin to Chennai, its capital – the place summer season temperatures typically exceed 40 levels Celsius (104 levels F) – and Coimbatore, a textile hub.

The pinnacle of the Tamil Nadu Meals and Allied Merchandise Supply Staff Union, Okay.C. Gopikumar, welcomed the subsidy and welfare efforts however urged the federal government to increase them to extra staff in addition to give them higher situations, akin to paid go away.

Swiggy and Zomato, two of India’s greatest supply suppliers, didn’t instantly reply to requests for remark.

© Thomson Reuters 2025