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Latest Business News, Business News India Today | The HinduBusinessLine

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Air India crash site in Ahmedabad to be redeveloped into ...
By BL Ahmedabad Bureau · 2026-06-12 · via Latest Business News, Business News India Today | The HinduBusinessLine
Air India AI-171 plane crash site, in Ahmedabad, Gujarat

Air India AI-171 plane crash site, in Ahmedabad, Gujarat | Photo Credit: PTI

On the first anniversary of the Air India plane crash that claimed 260 lives in Ahmedabad, the Gujarat government on Friday announced plans to redevelop the disaster-affected New Mental Campus in Meghaninagar into a major health and medical education hub with projects worth more than ₹547 crore.

Paying tribute to those who lost their lives in the June 12, 2025 tragedy, Gujarat Health Minister Praful Pansheriya said the state has decided to transform the site of the disaster into a centre for healthcare, rehabilitation, research and medical education. This will be done by removing the fully and partially damaged and charred buildings in the campus where the aircraft crash landed a year ago.

The minister said the government has now drawn up a long-term redevelopment plan for the campus. The largest project under the plan is a ₹295-crore Paraplegia and Spine Hospital along with a rehabilitation centre, physiotherapy college and hostel facilities for 500 students. The project will come up on nearly 25,000 square metres of land. The government will also construct new G+7 hostel blocks with 510 residential units for married postgraduate students at an estimated cost of ₹192 crore.

In addition, a modern canteen building with a seating capacity of 800 students will be developed at a cost of ₹10 crore, while a state-of-the-art NABL-standard Food and Drugs Laboratory will be built at an estimated cost of ₹50 crore. The laboratory will come up in a G+7 structure spread over about 3,100 square metres.

According to the health department, the redevelopment will replace buildings damaged in the crash and create a modern ecosystem for healthcare delivery, research and medical education. Officials said that once completed, the New Mental Campus is expected to emerge as one of Gujarat’s leading centres for health services, rehabilitation, medical research and higher education, catering to students, healthcare professionals and the wider public.

A prayer meeting was also held at BJ Medical college for the deceased on Friday morning. Meanwhile, a number of family members of the Air India crash are expected to visit the crash site later in the day and hold a candle-light vigil.

Published on June 12, 2026