Tata Group is likely to set up a trust to financially support the families of the victims of the June 12 Air India Ahmedabad plane crash. On June 26, Tata Sons chairman N Chandrasekaran informed the board of the proposed trust structure. The approvals are sought for an allocation of ₹500-crore for setting up the foundation, the Economic Times reported, citing sources.
What & Who Will It Cover?
The proposed funds will reportedly be utilised towards providing compensation to the families of the 271 victims of the crash, medical care and renovation of the medical college in Ahmedabad, where the plane crashed. Besides this, a portion will be set aside for the long-term needs of the affected families. The trust will offer support to both Indian citizens and foreign nationals, including several British passengers who lost their lives in the unfortunate June 12 crash.
The trust, which is expected to be registered soon, is currently headed by PB Balaji. He is group CFO of Tata Motors and has amassed extensive experience in regulatory, financial, and corporate governance matters. Apart from people from the Tata Group, the trust will consist of individuals outside of the salt-to-power conglomerate to ensure good governance and compliance, ET reported.
The Tata Group had earlier announced Rs 1 crore compensation for those who lost their lives in the Ahmedabad Air India plane crash and to take care of medical expenses of those injured. The report didn’t specify whether the compensation of Rs 1 crore will be separate from the sum that the trust will offer to the families of the victims. Outlook Business wasn’t able to independently verify it.
“To provide immediate financial support, Air India will be making an interim payment of Rs 25 lakh rupees, or approximately 21,000 GBP to each of the families of the deceased and also to the survivor. This is in addition to the 1crore rupees, or approximately 85,000 GBP already committed by Tata Sons,” Air India’s CEO Campbell Wilson had said in a statement.
