Chennai: In a significant step to support gig workers, Tamil Nadu has announced a subsidy of 20,000 rupees to help internet-based service workers purchase e-scooters.
Finance Minister Thangam Thenarasu revealed the initiative during the state budget presentation. It aims to ease the financial burden on gig workers, particularly those engaged in food and grocery deliveries.
The gig workforce has expanded rapidly in India, particularly after the COVID-19 pandemic led to widespread unemployment. Tamil Nadu recognizes the critical role these workers play in the economy and is launching welfare measures to provide financial assistance and security.
“A new scheme will be launched to provide a subsidy of 20,000 rupees each to 2,000 internet-based service workers for purchasing e-scooters,” Thenarasu stated. Only workers registered with a state welfare body will be eligible for this benefit.
In addition to the subsidy, the government is introducing an insurance scheme covering nearly 150,000 gig workers. The initiative will provide compensation for accidental deaths and disabilities, ensuring some financial security for these workers, who often lack employer-provided benefits.
To improve working conditions, Tamil Nadu will also establish dedicated rest lounges in major cities like Chennai, where summer temperatures frequently surpass 40°C (104°F), and Coimbatore, a key industrial hub.
The subsidy is particularly crucial given the rising costs of e-scooters, with Ola’s models starting at 79,999 rupees and Ather’s at 99,999 rupees.
With Tamil Nadu taking the lead in worker welfare initiatives, the program could set a precedent for other Indian states to address the growing needs of gig economy workers.
