Tamil Nadu govt announces Rs 20,000 subsidy for gig workers buying new electric scooters

The Tamil Nadu government has announced a Rs 20,000 subsidy for 2,000 gig workers registered with the Gig Workers Welfare Board to help them purchase electric scooters (e-scooters).

The initiative, which was unveiled by the state's finance minister Thangam Thenarasu in the 2025-26 Budget, is part of a broader effort to support workers in internet-based services such as food delivery and e-commerce logistics.

The scheme comes amid a rising dependence on e-scooters by gig workers employed with platforms like Zomato, Swiggy, Zepto, and Blinkit, where two-wheelers are essential for daily operations. The state government aims to reduce financial burdens on these workers while promoting the adoption of electric vehicles (EVs).

Strengthening social security for gig workers

In addition to the e-scooter subsidy, the Tamil Nadu government is introducing a group insurance scheme that will provide compensation for accidental death and disability, benefiting approximately 1.5 lakh internet-based service workers.

The initiative seeks to enhance financial protection for gig workers and their families, who often lack traditional employment benefits.

Additionally, dedicated lounges equipped with essential facilities will be set up in major cities, including Chennai and Coimbatore, offering workers a place to rest amid long working hours.

Chennai, known for its intense summer heat, and Coimbatore, a major industrial hub, will be among the first locations to receive these rest areas.

Expansion of vocational training institutes

Beyond gig workers, the Tamil Nadu government has also announced plans to expand vocational training opportunities for children of construction workers. Seven new Government Industrial Training Institutes (ITIs) will be set up in districts with high concentrations of construction labor, including Krishnagiri, Tiruvallur, Kanchipuram, Madurai (Thiruparankundram), Trichy (Mannachanallur), Coimbatore (Perur), and Dharmapuri (Karimangalam).

These ITIs, which will be backed by Rs 148 crore from the Tamil Nadu Construction Workers Welfare Board, will offer training in six trades, adding 1,370 new seats annually.