Nagpur: Nagpur could soon emerge as a major aerospace manufacturing centre if the Indian Air Force (IAF) selects the C-390 Millennium for its Medium Transport Aircraft (MTA) programme. Brazilian aerospace major Embraer and the Mahindra Group have identified Nagpur as the potential location for a Final Assembly Line (FAL) for the aircraft, opening the possibility of manufacturing around 80 military transport aircraft in the city under the proposed multi-billion-dollar defence programme.
The development could significantly strengthen Nagpur’s position on India’s aerospace and defence manufacturing map, with the proposed facility expected to bring aircraft assembly, systems integration, manufacturing engineering and supply-chain development capabilities to the city.
Embraer and Mahindra are currently working with the Maharashtra Government on the preparatory processes required for setting up the proposed industrial and support ecosystem. However, the companies have clarified that the facility will be established only if the C-390 Millennium is selected by the Government of India and an order is placed under the IAF’s MTA programme.
The two companies said they were continuing discussions and planning activities to establish a localised manufacturing and support ecosystem for the aircraft in India. They are also working with the Maharashtra Government to complete the associated processes so that the required industrial infrastructure can be developed quickly if the programme is awarded to their partnership.
The proposed Nagpur facility is envisaged as a state-of-the-art aerospace production hub, bringing advanced capabilities in aircraft assembly, system integration and manufacturing engineering, besides encouraging the development of a local aerospace supply chain.
For Nagpur, the proposal assumes particular significance as it could create opportunities for ancillary industries, engineering firms, component manufacturers, skilled employment and maintenance-related activities linked to the aerospace sector.
The IAF is looking to procure around 80 Medium Transport Aircraft to replace its ageing fleet of Soviet-origin AN-32 and IL-76 transport aircraft. The C-390 Millennium is competing with aircraft including the Airbus A400M and Lockheed Martin C-130J Super Hercules. The IAF already operates 12 C-130J aircraft.
The C-390 Millennium is a twin-engine, jet-powered military transport aircraft designed and manufactured by Embraer. With a payload capacity of up to 26 tonnes, the aircraft is capable of carrying out multiple missions, including troop and cargo transportation, airdrops, medical evacuation, search and rescue, firefighting and humanitarian operations. It is also designed to operate from temporary or unpaved runways.
Vinod Sahay, Member of the Group Executive Board at Mahindra Group, said the company was committed to developing a globally competitive aerospace ecosystem in India and creating manufacturing and technology capabilities in line with the country’s Atmanirbhar Bharat initiative.
Bosco da Costa Junior, President and CEO of Embraer Defence and Security, said identifying Nagpur as a potential location for an assembly facility was an important step towards building a long-term aerospace ecosystem in India.
The proposed industrialisation programme would combine Embraer’s expertise in aerospace engineering and aircraft manufacturing with Mahindra’s manufacturing capabilities and established industrial network in India.
The partnership between the two companies has been progressing for the C-390 programme over the past two years. Embraer and Mahindra signed a Memorandum of Understanding in February 2024 and entered into a strategic cooperation agreement in October 2025 to jointly pursue the C-390 Millennium for the IAF’s MTA requirement.
Their cooperation covers industrialisation, local manufacturing, aircraft assembly, supply-chain development and MRO (Maintenance, Repair and Overhaul) activities in India. In February 2026, the companies also announced plans to work towards establishing C-390 Millennium MRO capabilities in India, subject to the aircraft being selected under the MTA programme.
If the proposal materialises, Nagpur could therefore become more than an assembly location, with the planned ecosystem potentially encompassing manufacturing, engineering, maintenance, supply-chain development and other aerospace-related activities.
The project, however, remains contingent on the outcome of the IAF’s MTA procurement process and the Government of India’s selection of the C-390 Millennium.
