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Rs 1 Lakh Crore MTA Race Begins: Tata, Mahindra, HAL in Fray

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Embraer's MTA Defence Partnership

The Ministry of Defence has floated a tender estimated at around Rs 1 lakh crore for 60 multi-role transport aircraft for the Indian Air Force, setting the stage for a major contest between US aerospace giant Lockheed Martin and Brazil’s Embraer.

The aircraft will replace the IAF’s ageing Antonov An-32 fleet and eventually strengthen its strategic, tactical and operational airlift capabilities.

The tender, issued on August 12, has been opened to Indian defence companies that will partner global original equipment manufacturers (OEMs) to manufacture the aircraft in India.

Tata is partnering Lockheed Martin for the C-130J Super Hercules, while Mahindra Defence has tied up with Embraer for the C-390 Millennium. Adani Defence and state-run Hindustan Aeronautics Limited (HAL) are also in the race.

The programme is expected to become India’s second major military aircraft manufacturing line after the Airbus-Tata C-295 facility at Vadodara.

Around 20 per cent of the aircraft are expected to be delivered in fly-away condition. The remaining aircraft will be manufactured in India, with more than 60 per cent indigenous content.

The IAF already operates 12 C-130J Super Hercules aircraft. Embraer’s C-390, meanwhile, would offer a new capability in the IAF’s medium transport segment if selected.

The C-295 programme is also progressing, with 56 of the 56 aircraft ordered from Airbus to be built in India, while the first 16 are being delivered from Spain.

The MTA competition is likely to narrow to the C-130J and C-390 based on the IAF’s operational requirements. Indian companies will submit bids, followed by technical evaluation, trials and assessment of techno-commercial offers.

Given the scale and complexity of the programme, the selection process could take more than two years.

The competition also brings together three major Indian industrial players. Tata already has experience in manufacturing military aircraft in India through the C-295 programme.

Mahindra has partnered with Embraer for the MTA, while Embraer has separately joined hands with Adani Defence for civilian aircraft manufacturing.

The programme could therefore mark another major step in India’s push to build a domestic military aviation manufacturing ecosystem while reducing dependence on ageing transport fleets.

Ravi Shankar

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Dr Ravi Shankar has over two decades of experience in communications, print journalism, electronic media, documentary film making and new media.
He makes regular appearances on national television news channels as a commentator and analyst on current and political affairs. Apart from being an acknowledged Journalist, he has been a passionate newsroom manager bringing a wide range of journalistic experience from past associations with India’s leading media conglomerates (Times of India group and India Today group) and had led global news-gathering operations at world’s biggest multimedia news agency- ANI-Reuters. He has covered Parliament extensively over the past several years. Widely traveled, he has covered several summits as part of media delegation accompanying the Indian President, Vice President, Prime Minister, External Affairs Minister and Finance Minister across Asia, Africa and Europe.

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