Embraer and the Mahindra Group said on October 1 that they would build a final assembly line for the C-390 Millennium military transport aircraft in Nagpur. The plan comes with a large condition attached. The factory goes ahead only if the Government of India selects the C-390 and the Indian Air Force places an order under its Medium Transport Aircraft (MTA) programme, according to Embraer’s own announcement.
The contest behind the announcement
The IAF wants roughly 80 medium transport aircraft to replace its ageing Soviet-era AN-32 and IL-76 fleets, PTI reported. Three aircraft lead the race: Embraer’s C-390, the Airbus A400M and Lockheed Martin’s C-130J Super Hercules. Lockheed starts with an advantage of familiarity, since the IAF already flies 12 C-130Js.
Naming a factory site before the contract is awarded gives Embraer and Mahindra a concrete local-manufacturing offer to put in front of the defence ministry. Bidders in large Indian defence deals compete hard on how much of the work they promise to bring home, and an identified city with state backing reads as more credible than a general pledge.
The partnership has built up in stages. The two companies signed an MoU in February 2024, a strategic cooperation agreement in October 2025, and in February 2026 announced plans for a maintenance, repair and overhaul (MRO) capability in India, Business Today reported. The Nagpur announcement is the first time they have tied the project to a specific place.
What Nagpur would get
The companies describe the proposed facility as covering aircraft assembly, systems integration, manufacturing engineering and local supply-chain development. They say they are working with the Maharashtra government on land and the industrial infrastructure the project would need. PTI’s report says the state has allotted land; the companies’ statement speaks of completing the required processes, so the paperwork may not be final.
Neither company has given an investment figure or a jobs estimate. Readers should treat any number circulating on social media with caution until one of the two firms or the state government puts it on record.
If the deal comes through, the bigger prize for the region may be the supplier base. A final assembly line for a 26-tonne-payload military transport pulls in work on harnesses, sheet-metal parts, tooling, ground equipment and maintenance training. Small and medium engineering units in the Butibori and Hingna industrial belts are the kind of firms that could compete for that work, and engineering colleges across Vidarbha would gain a new local employer for aeronautical and mechanical graduates who now mostly leave for Bengaluru, Hyderabad or Pune.
An existing aerospace foothold
Nagpur already has an aerospace foothold. Dassault Reliance Aerospace has made Falcon business-jet sections at MIHAN since 2019, and Dassault plans to move Falcon 2000 final assembly there, with a first India-built jet targeted by 2028, IBEF reported. A second assembly line in the city would help it pitch itself to aerospace suppliers as a cluster with steady work across two manufacturers.
What to watch
- The MTA decision. Everything depends on the IAF and the defence ministry choosing the C-390 over the A400M and C-130J. No selection timeline has been announced.
- The site. The companies have named the city but not the exact location. Watch for a state cabinet or MIDC decision on land.
- Rival offers. Airbus and Lockheed Martin will likely sharpen their own local-production pitches. If either names a different state, the contest becomes a regional one too.
For now, Nagpur has a conditional promise. It becomes a factory only when India signs a contract.
Sources: Embraer, Daily Excelsior (PTI), Business Today, IBEF
This report was written with AI assistance from the publicly reported sources linked here; each fact was cross-checked against at least two of them.