Tata Sons, the holding company of India’s largest group Tata Group, has created a trust in Ahmedabad on June 12 to provide financial assistance to the victims of Air India accident, for which approval has been sought from the board. The Economic Times report said that the company’s chairman N Chandrasekaran has informed the board about the trust in the interim board meeting on Thursday.
The report claims that Tata Sons has sought approval of allocation of Rs 500 crore for the trust. The holding company of Tata Group had first considered creating two different trusts. One for the families of Indian citizens and the other for foreign nationals killed in the accident of flights going to London.
Where to spend 500 crores will be spent
The Rs 500 crore will be used to give compensation to the families of those who lost their lives in the aircraft crash, medical care and harm in the aircraft crash to improve the medical college. The remaining amount will be used to meet the longitarm needs of the affected families. According to the report, the trust is expected to be registered soon.
People from outside will also be involved in this trust
The initiative is headed by PB Balaji, Group CFO of Tata Motors, who has more experience about regulatory, financial and corporate administration matters. Apart from this, people outside the Tata Group will also be included to bring more strength in this trust. There is also a possibility of contribution from Tata Trust. The board meeting included the nominees of Tata Trust Noel Tata, Venu Srinivasan and Vijay Singh.
275 people were killed
Significantly, the Air India aircraft in Ahmedabad crashed on June 12, in which 275 people lost their lives. Out of 242 people in this aircraft, 241 people died. Out of this, only one person, faith Ramesh survived. At the same time, people were also killed due to falling aircraft on the medical college. After this accident, Air India announced compensation. Also, the investigation of Boeing 878 started.