Proposed Nagpur Aircraft Facility
Mahindra and Embraer plan ₹6,000-crore Nagpur assembly line for military transport aircraft.
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Key Points
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The IAF issued its request for proposals in August to Indian bidders including Mahindra, Tata, Adani and Hindustan Aeronautics Limited; the competing Tata-Lockheed Martin team is offering the C-130J.
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The IAF requirement is for 60 medium transport aircraft, and the procurement numbers could eventually rise; the companies had until December to respond to the RFP.
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The partnership’s cooperation predates the Nagpur announcement: Mahindra and Embraer signed an initial MoU in February 2024 and a Strategic Cooperation Agreement in October 2025. In February 2026, they also announced plans to work toward C-390 maintenance, repair and overhaul capabilities in India, conditional on the aircraft being selected.
Mahindra Group and Brazil's Embraer have chosen Nagpur, Maharashtra, for a potential final assembly line for the C-390 Millennium military transport aircraft, marking a major push in their bid to win India's air force contract. Firstpost reports the facility could cost ₹6,000 crore and create about 1,000 jobs — but only if the Indian Air Force selects the C-390 over competing aircraft. No factory has been built or contract awarded yet.
The Indian Air Force needs 60 to 80 new transport planes to replace aging Soviet-era aircraft. Times of India notes that Mahindra and Embraer compete against Tata and Lockheed Martin, who are offering the C-130J Super Hercules. Defense contractors had until December 2026 to submit their proposals to India's Ministry of Defence.
A Partnership Built Over Two Years
Mahindra and Embraer's relationship began in February 2024 when they signed a joint memorandum at Brazil's embassy in New Delhi. The Hindu Business Line reports the two companies formalized their partnership in October 2025 with a Strategic Cooperation Agreement. In February 2026, they announced plans to build maintenance and repair facilities for the C-390 in India — again, only if the aircraft wins the Indian Air Force bid.
Nagpur's Industrial and Geographic Advantages
Nagpur sits in central Maharashtra with existing air cargo infrastructure through the Multi-modal International Cargo Hub and Airport (MIHAN). The city is close to Indian Air Force bases, which could simplify logistics and maintenance operations. Maharashtra state officials have allotted land for the project and pledged administrative support, though no formal contract exists yet.
The C-390 vs. Its Chief Rival
The C-390 Millennium is a modern twin-engine jet that carries 26 tonnes of cargo and flies faster than the C-130J offered by Tata and Lockheed Martin. SSB Crack notes the Embraer-Mahindra team argues their aircraft costs less to operate over its lifetime. Lockheed Martin's advantage is operational history — the Indian Air Force already owns 12 C-130J planes and has established supply chains with Tata in Hyderabad.
What Happens Next Depends on the RFP Decision
Mahindra's Vinod Sahay said the company is grateful for Maharashtra's land allocation but stressed that nothing moves forward without an Indian Air Force contract. The full procurement is estimated to cost about ₹1 lakh crore across aircraft, maintenance, training, and support over decades. India's Ministry of Defence will evaluate all bids and decide which aircraft best fits the air force's modernization needs.
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