The Gujarat Government has announced an estimated 547 INR-Crore redevelopment plan for the medical campus in Ahmedabad. It was severely damaged during the Air India AI171 crash in June 2025. The redevelopment will replace damaged hostel, residential and support infrastructure with new healthcare, educational and research facilities. Officials plan to completely demolish the affected structures before commencing construction.
The AI171 crash site redevelopment includes a healthcare zone spread across nearly 25,000 SqM. The government will construct a Paraplegia and Spine Hospital, a rehabilitation center, a physiotherapy college and a 500-student hostel. Around 175 INR-Crore is allocated for the rehabilitation center, physiotherapy college and hostel. Additionally, 120 INR-Crore has been earmarked for the specialised hospital. The plan also includes 510 residential units for married postgraduate students at an estimated cost of 192 INR-Crore. Further, the government will establish a new Food and Drugs Laboratory modelled on the state’s NABL-approved facility in Vadodara. The laboratory carries an estimated cost of 50 INR-Crore.
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Once completed, the AI171 crash site redevelopment will transform the damaged campus into a healthcare and medical education hub. The project will expand healthcare infrastructure, student accommodation and research facilities within the campus. Additionally, the new laboratory will strengthen pharmaceutical testing and research capabilities in Gujarat.
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