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Mahindra Group and Brazilian aerospace major Embraer have identified Nagpur as the potential location for a final assembly line for the C-390 Millennium in India, signalling that preparations for the aircraft’s industrialisation are moving ahead even as the Indian Air Force’s Medium Transport Aircraft (MTA) competition remains undecided.
The two companies said on Thursday that they are working with the Maharashtra government to advance the infrastructure and other processes required for the proposed facility. The plan, however, remains contingent on the C-390 being selected by India and an order being placed under the IAF’s MTA programme.
The development gives a clearer picture of the industrial proposition being offered by the Mahindra-Embraer partnership, which is competing against the Tata-Lockheed Martin combination offering the C-130J-30.
The IAF has issued an RFP for 60 medium transport aircraft, primarily to replace its ageing AN-32 fleet and eventually address the requirement arising from the ageing IL-76 fleet.
The current procurement is expected to have the potential for follow-on orders, making the programme strategically important for India’s military transport fleet as well as its aerospace manufacturing ecosystem.
Both contenders have until December to respond to the RFP.
According to Mahindra and Embraer, the proposed Nagpur facility would be developed as a state-of-the-art aerospace manufacturing site, bringing aircraft assembly, systems integration and manufacturing engineering capabilities into India.
The partnership also plans to progressively bring Indian aerospace companies into the C-390 supply chain if the aircraft is selected. The proposed ecosystem would cover manufacturing, aftermarket services, training and lifecycle support.
“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,” said Vinod Sahay, Member of the Group Executive Board, Mahindra Group.
He said Nagpur offered an opportunity to build such a capability, while stressing that the preparations were subject to the C-390 being selected and an IAF order being placed.
Embraer President and CEO, Defence & Security, Bosco da Costa Jr., described the identification of Nagpur as an important step towards establishing a long-term aerospace ecosystem in India.
The company said the proposed facility would combine Embraer’s aircraft design, engineering and manufacturing expertise with Mahindra’s Indian manufacturing capabilities and industrial network.
The proposal goes beyond establishing an assembly line. The two companies envisage local manufacturing, supply-chain development and maintenance, repair and overhaul (MRO) capabilities as part of the C-390 ecosystem.
Mahindra and Embraer signed a Strategic Cooperation Agreement in October 2025 to jointly pursue the C-390 for the IAF programme, following an MoU signed in February 2024. The agreement covers industrialisation, local manufacturing, assembly, supply-chain development and MRO.
In February 2026, the companies separately announced plans to work towards establishing a C-390 MRO capability in India, again subject to selection of the aircraft.
The C-390 is a multi-mission transport aircraft capable of carrying up to 26 tonnes of payload. Besides conventional troop and cargo transport, it is designed for airdrop, medical evacuation, search and rescue, firefighting and humanitarian missions, and can operate from temporary or unpaved runways.
Team BharatShakti
