One year after AI171 crash, Gujarat announces Spine hospital, physio college, 510 new hostel units worth ₹547 cr
Gujarat Health Minister Praful Panseria, paying tribute to those who died in the crash on June 12, 2025, said the government was determined to convert the memory of the tragedy into something purposeful
- Jun 12, 2026,
- Updated Jun 12, 2026 10:06 AM IST
A year after Air India flight AI171 crashed into student hostels and mess buildings at the New Mental Campus in Ahmedabad, killing 260 people, the Gujarat government has announced a Rs 547 crore plan to completely rebuild and transform the site into a major healthcare and education hub, according to a report by IANS.
Gujarat Health Minister Praful Panseria, paying tribute to those who died in the crash on June 12, 2025, said the government was determined to convert the memory of the tragedy into something purposeful. The redevelopment, he said, was about "turning the site into a sanctuary of health and education that will herald a new era in healthcare and inspire new hopes for medical students."
What was lost and what will be built
The New Mental Campus, spread across 1,71,100 square metres adjacent to Asarwa Civil Hospital, had housed a substantial residential and academic infrastructure built between 2015 and 2016. This included six blocks of teaching staff quarters with 120 three-BHK units, six blocks of non-teaching staff quarters with 120 two-BHK units, two undergraduate hostel blocks with 364 rooms, seven married post-graduate hostel blocks with 161 units, and a mess and canteen building.
The Boeing 737 Dreamliner struck the canteen building and the Atulyam 1 to 4 hostel blocks, four of the married post-graduate hostel structures housing 92 students and their families. The health department moved swiftly in the aftermath to arrange temporary accommodation and catering for all displaced students.
All damaged structures will now be fully demolished to clear the land for new development.
Phase one: The crash site itself
The primary phase of the redevelopment focuses directly on the crash site, where approximately 25,000 square metres of land will be used to build a Paraplegia and Spine Hospital, a rehabilitation centre, a physiotherapy college, and a 500-student hostel. The current year's budget has allocated Rs 175 crore for the rehabilitation centre, physiotherapy college, and hostel, and Rs 120 crore for the Paraplegia and Spine Hospital, a combined allocation of Rs 295 crore for this zone alone.
Student housing restored and expanded
New hostel blocks for married post-graduate students will be constructed next to the existing Sopanam Hostel within the campus. The plan calls for 510 units across approximately eight blocks, each built to a ground-plus-seven configuration. The estimated cost for this component is Rs 192 crore.
A new pharmaceutical testing facility
The redevelopment also includes a Food and Drugs Laboratory on approximately 3,100 square metres of campus land. Modelled on the NABL-approved laboratory in Vadodara, the facility will be a ground-plus-multistorey structure. A budget provision of Rs 28.31 crore has already been made for 2025-26 against a total estimated requirement of Rs 60.61 crore, with the final expected cost pegged at Rs 50 crore.
The new dining facility being planned for the campus is designed to accommodate around 800 students at an estimated cost of Rs 10 crore.
A year after Air India flight AI171 crashed into student hostels and mess buildings at the New Mental Campus in Ahmedabad, killing 260 people, the Gujarat government has announced a Rs 547 crore plan to completely rebuild and transform the site into a major healthcare and education hub, according to a report by IANS.
Gujarat Health Minister Praful Panseria, paying tribute to those who died in the crash on June 12, 2025, said the government was determined to convert the memory of the tragedy into something purposeful. The redevelopment, he said, was about "turning the site into a sanctuary of health and education that will herald a new era in healthcare and inspire new hopes for medical students."
What was lost and what will be built
The New Mental Campus, spread across 1,71,100 square metres adjacent to Asarwa Civil Hospital, had housed a substantial residential and academic infrastructure built between 2015 and 2016. This included six blocks of teaching staff quarters with 120 three-BHK units, six blocks of non-teaching staff quarters with 120 two-BHK units, two undergraduate hostel blocks with 364 rooms, seven married post-graduate hostel blocks with 161 units, and a mess and canteen building.
The Boeing 737 Dreamliner struck the canteen building and the Atulyam 1 to 4 hostel blocks, four of the married post-graduate hostel structures housing 92 students and their families. The health department moved swiftly in the aftermath to arrange temporary accommodation and catering for all displaced students.
All damaged structures will now be fully demolished to clear the land for new development.
Phase one: The crash site itself
The primary phase of the redevelopment focuses directly on the crash site, where approximately 25,000 square metres of land will be used to build a Paraplegia and Spine Hospital, a rehabilitation centre, a physiotherapy college, and a 500-student hostel. The current year's budget has allocated Rs 175 crore for the rehabilitation centre, physiotherapy college, and hostel, and Rs 120 crore for the Paraplegia and Spine Hospital, a combined allocation of Rs 295 crore for this zone alone.
Student housing restored and expanded
New hostel blocks for married post-graduate students will be constructed next to the existing Sopanam Hostel within the campus. The plan calls for 510 units across approximately eight blocks, each built to a ground-plus-seven configuration. The estimated cost for this component is Rs 192 crore.
A new pharmaceutical testing facility
The redevelopment also includes a Food and Drugs Laboratory on approximately 3,100 square metres of campus land. Modelled on the NABL-approved laboratory in Vadodara, the facility will be a ground-plus-multistorey structure. A budget provision of Rs 28.31 crore has already been made for 2025-26 against a total estimated requirement of Rs 60.61 crore, with the final expected cost pegged at Rs 50 crore.
The new dining facility being planned for the campus is designed to accommodate around 800 students at an estimated cost of Rs 10 crore.