Gujarat Govt Allocates ₹105 Crore to Rebuild BJMC Hostel After Ahmedabad Plane Crash

A year after the tragic AI-171 Air India aircraft crash severely damaged the premises of the BJ Medical College hostel in Ahmedabad, the Gujarat state government has officially greenlit a massive reconstruction project.

The ₹105 Crore Redevelopment Plan

Announcing the decision on Thursday, May 28, 2026, State Health Minister Praful Pansheriya confirmed that a state-of-the-art hostel facility will be constructed at the exact location of the crash, at an estimated cost of ₹105 crore.

To fund the reconstruction, the Tata Group, which owns Air India, has agreed to pay ₹53.12 crore to the State Health Department as compensation for the destruction of the ‘Atulyam’ hostel blocks 1 to 4, the canteen, and the local sub-station. Additionally, the state government has already provisioned ₹34.65 crore in the 2026-27 budget to kickstart the project.

Upgraded Facilities for Resident Doctors

Expected to begin construction within three months, the new complex, named ‘Atulyam 1 to 7’, will be a Ground-plus-8 structure boasting three times the accommodation capacity of the old building. The upgraded facility will house 236 doctors and uniquely features studio apartment-style units – complete with a living room, kitchen, bedroom, and restroom – designed specifically to accommodate married resident doctors. The campus will also feature basement parking, a gym, and green recreational spaces.

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A Controversial Decision

However, the government’s decision to rebuild a residential complex on the exact crash site has sparked an emotional debate. The families of several victims who lost their lives in the deadly aviation accident are strongly protesting the construction, demanding that the specific site be preserved as a permanent memorial to honor the victims rather than being paved over for a new hostel block.

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