India’s southern state of Tamil Nadu will supply a subsidy of Rs. 20,000 to pick out gig staff to purchase e-scooters, a minister stated on Friday, as extra younger folks join with on-line platforms to ship meals and groceries.
Gig staff, or these exterior conventional employer-employee relationships, are set to play a key function on the earth’s fifth-biggest financial 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 price range.
“A brand new scheme can be launched …. to offer 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 can be eligible.
Additional particulars of the scheme can be revealed later, Labour Secretary Veera Raghava Rao advised 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 will even arrange lounges for using such staff in massive cities, equivalent 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 Employees 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, equivalent to paid depart.
Swiggy and Zomato, two of India’s largest supply suppliers, didn’t instantly reply to requests for remark.
© Thomson Reuters 2025
