Nagpur eyed as final assembly site for C-390 military aircraft by Embraer and Mahindra

Nagpur could become a major aerospace manufacturing hub, provided the Indian Air Force (IAF) chooses the C-390 Millennium for its Medium Transport Aircraft (MTA) programme. Brazilian aerospace company Embraer and the Mahindra Group have identified Nagpur as a possible location for the aircraft's final assembly line (FAL). The proposed multi-billion-dollar defence programme could open the way for about 80 military transport aircraft to be built in the city.

Embraer and Mahindra are currently working with the Maharashtra government on the necessary initial processes to set up the proposed industrial and support ecosystem. The companies have made clear, however, that the facility will be built only if the Government of India selects the C-390 Millennium and an order is placed under the IAF's MTA programme.

The two companies say discussions and planning for a local manufacturing and support ecosystem for the aircraft in India are continuing. They are also engaged with the Maharashtra government so that the required industrial infrastructure can be readied quickly if their partnership wins the programme.

The proposed Nagpur facility is seen as a state-of-the-art aerospace production hub. It would bring capabilities in aircraft assembly, systems integration and manufacturing engineering, and would also boost the growth of a local aerospace supply chain. The proposal matters for Nagpur because it could create opportunities for ancillary industries, engineering firms, component makers, skilled jobs and maintenance work.

The IAF wants to buy about 80 medium transport aircraft to replace its ageing Soviet-origin AN-32 and IL-76 transport planes. The C-390 Millennium competes with aircraft such as the Airbus A400M and the 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 built by Embraer. It can carry a payload of up to 26 tonnes. It can be used for transporting troops and cargo, airdrops, medical evacuation, search and rescue, firefighting and humanitarian aid. It is designed to operate from temporary or unpaved runways as well.

Vinod Sahay, member of the Group Executive Board at the Mahindra Group, said the company is committed to building a globally competitive aerospace ecosystem in India and to creating manufacturing and technology capabilities in line with the country's Aatmanirbhar Bharat initiative. Bosco da Costa Junior, president and CEO of Embraer Defense & Security, said identifying Nagpur as a possible site for the assembly facility is an important step towards a long-term aerospace ecosystem in India.

The proposed industrialisation programme will combine Embraer's expertise in aerospace engineering and aircraft manufacturing with Mahindra's manufacturing capability and established industrial network in India.

The partnership between the two companies on the C-390 programme has been advancing for the past two years. Embraer and Mahindra signed a memorandum of understanding (MoU) in February 2024 and 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 maintenance, repair and overhaul (MRO) activities in India. In February 2026, the companies also announced a plan to build MRO capability for the C-390 Millennium in India, subject to the aircraft being selected in the MTA programme.

If the proposal moves ahead, Nagpur could become much more than an assembly site. The proposed ecosystem could include manufacturing, engineering, maintenance, supply chain development and other aerospace-related activities. Even so, the entire project depends on the outcome of the IAF's MTA procurement process and on the Government of India choosing the C-390 Millennium.