Tata Sons, the holding company of India's largest conglomerate Tata Group, has established a trust in Ahmedabad on June 12 to provide financial assistance to victims of the Air India crash, seeking approval from the board. According to an Economic Times report, the company's chairman, N Chandrasekaran, briefed the board about the trust in an interim board meeting on Thursday.
The report claims that Tata Sons has sought approval for an allocation of ₹500 crores for the trust. Initially, the TATA Group's holding company considered creating two separate trusts: one for families of Indian citizens and another for foreigners killed in flights going to London.
Where ₹500 Crores Will Be Spent
The ₹500 crores will be used to compensate families who lost loved ones in the plane crash, fund medical care, and help restore the medical college damaged in the crash. The remaining amount will be utilized to address the long-term needs of the affected families. The trust is expected to be registered soon.
Inclusivity in the Trust
The initiative is led by Tata Motors' Group CFO, P.B. Balaji, who has extensive regulatory, financial, and corporate governance experience. Additionally, individuals outside the Tata Group will be involved to strengthen the trust. Contributions from the Tata Trusts are also expected. Board members Noel Tata, Venu Srinivasan, and Vijay Singh, representatives of Tata Trust, were present in the meeting.
275 Lives Were Lost
The Air India plane crashed in Ahmedabad on June 12, resulting in the loss of 275 lives. Out of the 242 passengers on board, only one, Vishwas Ramesh, survived. The crash also claimed lives of people around the site, as the plane fell on the nearby medical college. Following this tragic event, Air India announced compensation, and an investigation into the Boeing 878 commenced.
