Air India AI171 Crash Site to Get Rs 547-Crore Makeover With Hospital, Hostel and Research Centre

A year after the Air India AI171 crash shook Ahmedabad and claimed 260 lives, the Gujarat government has unveiled a massive redevelopment plan for the medical campus that was devastated in the disaster.

The project, worth Rs 547 crore, aims to rebuild the area and turn it into a major centre for healthcare, medical education and research.

The crash took place on June 12, 2025, when the London-bound Air India aircraft went down inside the campus, slamming into student hostel and mess buildings. Several residential blocks were badly damaged, leaving students and staff displaced overnight.

Now, instead of simply repairing what was lost, the state wants to completely reshape the site.

Speaking on the first anniversary of the tragedy, Gujarat Health Minister Praful Panseria said the government wants to ensure that a place marked by loss becomes a place that serves future generations. According to him, the goal is to create modern healthcare and educational facilities that will benefit students and patients alike.

Before the crash, the campus housed teaching and non-teaching staff quarters, undergraduate hostels, married postgraduate accommodation and a large mess facility. Most of these structures were built between 2015 and 2016.

Officials have decided that the damaged buildings will be demolished entirely. The cleared land will then be used for a series of new projects.

At the heart of the plan is a new healthcare zone spread across nearly 25,000 square metres. The government intends to build a Paraplegia and Spine Hospital, a rehabilitation centre, a physiotherapy college and a hostel that can accommodate 500 students.

Around Rs 175 crore has already been earmarked for the rehabilitation centre, physiotherapy college and student hostel. Another Rs 120 crore has been allocated for the specialised spine and paraplegia hospital.

Student housing is also set for a major upgrade. New hostel blocks for married postgraduate students will be built near the existing Sopanam Hostel. The proposal includes around 510 residential units across multiple buildings and carries an estimated cost of Rs 192 crore.

The redevelopment plan goes beyond hospitals and hostels. A modern Food and Drugs Laboratory is also on the drawing board. The facility will be modelled on Gujarat’s NABL-approved laboratory in Vadodara and is expected to strengthen pharmaceutical testing and research capabilities in the state.

The new laboratory is expected to cost around Rs 50 crore, with an initial budget allocation already made.

Once completed, officials say the transformed campus will function as a major healthcare and medical education hub, replacing the ruins left behind by one of the country’s deadliest aviation disasters with facilities designed for the future.

Read More: One Year On, Final Answers Elusive: How Air India's Boeing Dreamliner Flight AI171 Ended In Disaster