Eyeing multi-billion-dollar IAF deal, Embraer and Mahindra shortlist Nagpur for C-390 assembly line

NEW DELHI: Eyeing India's multi-billion-dollar deal to procure around 80 Medium Transport Aircraft (MTA), aerospace major Embraer and the Mahindra Group have identified Nagpur as the potential manufacturing hub for the C-390 Millennium if awarded the contract.

The partnership is actively laying the groundwork for a localised manufacturing and support hub in India.

The Indian Air Force plans to procure around 80 military transport aircraft to replace its aging fleet of Soviet-era AN-32 and IL-76 planes.

Besides C-390 Millennium, the other top contenders for the deal are Airbus Defence and Space's A-400M plane and Lockheed Martin's C-130 J Super Hercules. The IAF already operates 12 C-130 J Super Hercules.

Mahindra Group and Embraer are continuing preparatory discussions and planning activities regarding an industrial and support ecosystem for the C-390 Millennium in India, as the companies jointly pursue the Indian Air Force (IAF) Medium Transport Aircraft programme, the two companies said in a statement.

"As part of their ongoing preparations, Mahindra and Embraer are working with the government of Maharashtra and have identified Nagpur for a potential Final Assembly Line for Embraer C-390 Millennium aircraft production in India," the statement said.

The proposed facility would support the local assembly and industrialisation of the aircraft in India, subject to the Embraer C-390 Millennium being selected by the government of India and an order being placed under the IAF's MTA programme, the two companies said.

"The companies are working closely with the Maharashtra government on completion of the associated processes, with the objective of ensuring that the required industrial infrastructure can be progressed expeditiously if the programme is awarded to the partnership," according to the statement.

Vinod Sahay, Member of the Group Executive Board at Mahindra Group, said, "Mahindra is committed to building a globally competitive aerospace ecosystem in India and to creating meaningful manufacturing and technology capabilities that contribute to the country's Atmanirbhar Bharat ambitions."

"As we work with Embraer on the C-390 Millennium, we are preparing the industrial ecosystem required to support the programme at scale. Nagpur offers a compelling opportunity for such a capability, and we are very grateful to the government of Maharashtra on expeditiously allotting the land in Nagpur and helping with the related requirements," he said.

"These preparations are, of course, subject to the selection of the C-390 Millennium by the Government of India and the placement of the IAF order," Sahay said.

Bosco da Costa Jr, President and CEO, Embraer Defence and Security, said: "Embraer is pleased to deepen its partnership with Mahindra as we advance our preparations to bring the C-390 Millennium's industrial capabilities to India." "Identifying Nagpur as a potential location for an assembly facility is an important step in building a robust, long-term aerospace ecosystem in the country.

"We value the support of the Government of Maharashtra and look forward to working closely with our partners to strengthen India's indigenous aerospace and defence capabilities, subject to the C-390 Millennium being selected for the Indian Air Force programme," he said.

The companies said the proposed production hub at Nagpur would be a state-of-the-art facility in India bringing knowhow on aircraft assembly, system integration, manufacturing engineering, local supply chain development and others into the country.

"Subject to the programme award, the partnership intends to progressively integrate Indian aerospace companies into the C-390 Millennium ecosystem, to deliver manufacturing, aftermarket services, training and lifecycle support, in line with the Government of India's Make in India and Atmanirbhar Bharat objectives," the statement said.

Embraer and Mahindra entered into a strategic cooperation agreement in October last year to jointly advance the C-390 Millennium for the IAF's MTA programme, building on their earlier MoU signed in February 2024.

The agreement envisages collaboration on industrialisation, local manufacturing, assembly, supply chain development and MRO (Maintenance, Repair, and Overhaul) activities in India.

In February 2026, the two companies also announced plans to work towards establishing a C-390 Millennium MRO capability in India, subject to the aircraft's selection under the MTA programme.

The C-390 Millennium is a multi-mission military transport aircraft designed to perform a range of missions including troop and cargo transport, airdrop operations, medical evacuation, search and rescue, firefighting and humanitarian missions.

The aircraft has a payload capacity of up to 26 tonnes and is designed to operate from temporary or unpaved runways.

The proposed industrialisation programme would leverage Embraer's aerospace engineering and aircraft manufacturing expertise with Mahindra's established manufacturing capabilities and extensive Indian industrial ecosystem, the statement noted.

"The companies will continue to engage with the Government of India, the Indian aerospace ecosystem and the Government of Maharashtra as they progress preparations for the programme," it said.