Tamil Nadu Offers ₹20k e-Scooter Subsidy to Support Clean Mobility; But What About the Rest?

Tamil Nadu has announced a ₹20,000 subsidy for 2,000 registered gig workers to buy e-scooters, together with group insurance for 50,000 workers, through its Gig Workers Welfare Board. It is included in the state budget for 2025–26, as a means of supporting gig workers straddling unemployment and the absence of formal safeguards following the pandemic.

Why This Matters

Gig workers, such as food, grocery, and courier delivery riders, typically have high initial expenses for cars. Even low-cost electric vehicles (such as Ola or Ather) are priced between ₹80,000–₹1 lakh. A ₹20,000 subsidy would fill this gap and formalise mobility in the gig economy.

Also Read: Karnataka Mulling To Impose Fee On Swiggy, Zomato, Rapido, Uber, Others: Report

Worker and Union Voices

The union of gig workers, organised by K.C. Gopikumar, appreciated the move but called for extension to more areas and better conditions, such as paid holidays and institutional recognition of accountability on the platforms. Delivery companies Swiggy and Zomato have, till now, kept silent on the initiative. 

Challenges to Reach and Awareness

In spite of the rackets, registration of workers is low; only slightly more than 10,000 out of an estimated 500,000 gig workers have registered with Tamil Nadu's board. Lack of awareness and registration obstacles (such as Aadhar OTP problems) hamper outreach.

Also Read: Tamil Nadu To Offer ₹20,000 Subsidy On e-Scooter Purchase For Gig Workers

Infrastructure Gaps

Using an e-scooter is one thing; recharging it is another. Tamil Nadu's public EV charging stations are still scarce, aggravating "range anxiety" among consumers. Worse, the market is inundated with unregistered, super-affordable (<₹30,000) EVs that cut corners on safety standards and no insurance cover, creating grave threats to users and pedestrians alike.

How Other States Compare

• Haryana provides gig workers with ₹5,000 subsidies and interest-free loans of up to ₹45,000.
• States such as Delhi, Gujarat, Maharashtra, and UP have wider EV subsidies (₹10K–₹30K) for everyone purchasing vehicles, not just gig workers.
• Karnataka takes the lead in policy innovation with the provision of fare benefits, formal bills, and ₹5 lakh accident insurance for gig workers, which Tamil Nadu may follow suit with.

OEMs See Opportunity, Consumers Worry

Electric carmakers might gain by receiving demand signals from gig workers for durable, long-lasting e-scooters designed to handle gig-life workloads. But workers complaining say these support packages, though needed, are like a drop in the ocean, considering irregular working hours, no guaranteed leave, and minimal social security.

Also Read: After Karnataka, Hyderabad May Ban Bike Taxis Too

The Bottom Line

Tamil Nadu's subsidy is a progressive, welcome measure in the direction of acknowledging gig workers as members of the state's labour force and adopting green mobility. But the acid test will be execution, awareness, registration, infrastructure, and safety enforcement, will ascertain if this is a pilot to inclusive, scalable reform or merely a drop in the ocean.

Would the government now focus on mandatory EV safety regulations and charging facilities, or continue to provide targeted fiscal incentives?