Tata Sons establishes ₹500cr trust for Air India crash victims
What's the story
Tata Sons has approved a ₹500-crore public charitable trust to support families affected by the tragic crash of Air India flight AI-171. The incident, which took place on June 12 shortly after take-off from Ahmedabad's Sardar Vallabhbhai Patel International Airport, claimed the lives of 241 people onboard and 19 on the ground. It was India's deadliest aviation disaster since the Charkhi Dadri mid-air collision in 1996.
Trust's purpose
Trust to help families of those who died in crash
The newly formed AI-171 Trust will provide financial assistance and long-term rehabilitation support to the families of those who died in the crash, as well as those injured. Tata Sons chairman N Chandrasekaran sought approval for this initiative during the company's board meeting after the incident. The board unanimously supported his proposal and expressed condolences for the victims' families.
Fund distribution
How trust funds will be allocated
The ₹500 crore allocated to the trust will be distributed as follows: ₹300 crore will go to families of the deceased, including passengers and doctors from B. J. Medical College. Another ₹50 crore for medical treatment of injured, mostly B. J. Medical College staff and ₹50 crore for reconstructing the college's hostel block severely damaged in the crash. Finally, the remaining ₹100 crore will be used for long-term needs of affected families.
Future steps
Trust board to be formed by end of July
The trust will be registered and its board of trustees formed by the end of July. Chandrasekaran is likely to head the trust along with other members including independent non-Tata trustees. The initiative is being led by P B Balaji, Group CFO of Tata Motors, who has extensive experience in regulatory and financial governance.
Past efforts
Similar to trust set up after Mumbai terror attacks
This new initiative comes on the heels of Tata Sons' earlier announcement of ₹1.25 crore financial assistance to each family of the deceased. The trust's funds will fulfill these compensation promises. Tata Sons is working with its majority shareholder, Tata Trusts, for relief efforts. The move is similar to previous disaster response initiatives by the group such as the Taj Public Service Welfare Trust set up after 26/11 Mumbai terror attacks in 2008.