The largest conglomerate, Tata Sons, has established a trust to support the victims of the Air India crash in Ahmedabad on June 12. This initiative awaits board approval. According to the Economic Times, Chairman N. Chandrasekaran briefed about the trust during an interim board meeting on Thursday.
It is reported that Tata Sons is seeking approval for a ₹500 crore allocation to the trust. Initially, the TATA Group’s holding company considered forming two distinct trusts: one for Indian nationals' families and another for the families of foreign nationals involved in the London-bound flights disaster.
How Will the ₹500 Crore Be Utilized?
The ₹500 crore will be used to provide compensation to families of those who lost their lives in the crash, manage medical care, and improve the medical college affected by the aviation disaster. The remaining funds will address the long-term needs of the impacted families. The trust is expected to be registered soon, as per reports.
External Involvement in the Trust
This initiative led by Tata Motors’ Group CFO, P.B. Balaji, leverages his extensive experience in regulatory, financial, and corporate governance. To further bolster the trust, individuals outside Tata Group will be included. Contributions from Tata Trusts are anticipated. Attendees of the board meeting included Tata Trust nominees Noel Tata, Venu Srinivasan, and Vijay Singh.
275 Lives Lost
It is crucial to recall that an Air India aircraft tragically crashed in Ahmedabad on June 12, claiming 275 lives. Out of 242 people on board, 241 perished, with only one survivor, Vishwas Ramesh. The plane fell on a medical college, leading to further casualties in the vicinity. Following the tragedy, Air India announced compensation plans and commenced an investigation into the Boeing 787.
