(Image source from: Moneycontrol.com)
Tata Sons is in the process of obtaining board approval to establish a trust aimed at providing financial aid to the families of those who lost their lives in the Air India plane crash in Ahmedabad. During the initial board meeting following the tragedy on June 12, N Chandrasekaran, the chairman of Tata Sons, informed the leadership team about this initiative. He updated the board on the measures being taken by Tata Group to assist the relatives of the victims, indicating that he is collaborating closely with Air India to ensure prompt implementation of relief efforts. This tragic event resulted in the deaths of over 270 individuals when the ill-fated flight (AI-171), which was bound for London, crashed shortly after taking off from Ahmedabad airport.
To set up this trust, Tata Sons is requesting approval for a proposed allocation of Rs 500 crore, as reported by The Economic Times citing unnamed sources. The holding company of Tata Group previously contemplated creating two different trusts—one dedicated to the families of Indian citizens and another for foreign nationals. According to the report, these funds will be utilized for compensating the families of the 271 victims, providing medical assistance, and renovating BJ Medical College and Civil Hospital, which were impacted by the incident. This initiative is being spearheaded by PB Balaji, CFO of Tata Motors. Furthermore, Tata Sons plans to collaborate with Tata Trusts, its largest shareholder, to advance the relief efforts for the affected families, as stated by news agency PTI.
The remaining funds from the trust will be allocated for the ongoing needs of the families affected by the tragedy, as indicated in the report. Previously, the Tata Group, which oversees Air India, announced a compensation package of Rs 1 crore for each family of the passengers who perished in the June 12 incident. Chandrasekaran, who visited the crash site shortly after the event, confirmed that the group would also take care of the medical costs for the injured and ensure they receive the necessary care and assistance. "We will also support the construction of BJ Medical's hostel," he mentioned. Tragically, over 270 lives were lost in the crash, including nearly all of the 242 passengers and crew members aboard the Ahmedabad-London Gatwick flight.
The chairman of Tata Sons has committed to full cooperation and transparency concerning the investigation into the Air India crash. Describing the incident as "one of the darkest days in the Tata Group's history," Chandrasekaran asserted that the company would uphold its responsibilities. "We have built this group on trust and care. This is a challenging moment, but we will not shy away from our obligations, nor from doing what is right. We will bear this loss. We will remember," he conveyed in communication addressed to employees.
