Tata Sons to set up Rs 500 Cr Air India Trust

Tata Sons, the holding company of the $400-billion Tata Group, is moving to establish a Rs 500 crore (approximately $60 million)trust to provide long-term financial support to the families affected by the tragic Air India plane crash that occurred in Ahmedabad on June 12. The proposal was presented during an interim board meeting held on Thursday, where Tata Sons chairman N Chandrasekaran informed the board of the planned trust structure and relief initiatives.

The proposed trust is aimed at delivering structured financial assistance, including compensation to the families of the 271 victims, medical support for the injured, and aid for infrastructure restoration at BJ Medical College and Civil Hospital, which was affected during the crash. The tragic incident saw the loss of over 270 lives when the London-bound Air India flight AI-171 crashed shortly after take-off from Ahmedabad.During the board briefing, Chandrasekaran assured the leadership that the company is working in close coordination with Air India to ensure timely implementation of all relief efforts. He reiterated Tata Group’s commitment to standing by the victims’ families and pledged that the group would fulfill its responsibilities with transparency and empathy.The initiative is being spearheaded by Tata Motors Group CFO PB Balaji and will see collaboration with Tata Trusts to carry out longer-term support measures. The proposed corpus will also be partially allocated for rehabilitation efforts, including the reconstruction of the BJ Medical hostel facilities.

Sources indicated that Tata Trusts—the charitable entity holding a majority stake in Tata Sons may contribute to the corpus. The board meeting where the proposal was presented was attended by Tata Trust nominees Noel Tata, Venu Srinivasan, and Vijay Singh, who offered their condolences to the victims’ families.Initially, Tata Group had considered creating two separate trusts—one for Indian nationals and another for foreign nationals impacted by the tragedy. The plan now is to bring the efforts under a unified structure for streamlined execution and better outreach.Earlier, Tata Group had announced Rs 1 crore as compensation for each passenger who lost their life in the crash. In addition to this, it had committed to covering all medical expenses of those injured. Chandrasekaran, who visited the crash site in the days following the incident, emphasized that the company’s priority remains focused on relief, recovery, and long-term care for the affected families.

Describing the crash as “one of the darkest days in the Tata Group’s history,” Chandrasekaran conveyed in an internal message that the company would continue to act with integrity and compassion.“We built this group on trust and care. It is a difficult moment, but we will not retreat from our responsibilities, from doing what is right. We will carry this loss. We will not forget,” he said.

(State Correspondent)