The Mahindra Embraer Nagpur facility will be the final assembly line for the C-390 Millennium military transport aircraft in India if the Indian Air Force (IAF) selects the aircraft, the two companies said on Thursday.

Mahindra Group and Brazilian aerospace major Embraer are jointly bidding for the IAF's Medium Transport Aircraft (MTA) programme. Nagpur, in Maharashtra, is the site they have chosen.

The Government of Maharashtra has already allotted land for the project in Nagpur. Vinod Sahay, Member of the Group Executive Board at Mahindra Group, thanked the state for moving quickly. "Nagpur offers a compelling opportunity for such a capability, and we are very grateful to the Government of Maharashtra on expeditiously allotting the land in Nagpur and helping with the related requirements," he said.

Maharashtra allots land in Nagpur for C-390 line

According to the joint statement, Mahindra and Embraer are working closely with the Maharashtra Government to complete the processes linked to the site. The aim is to make sure the required industrial infrastructure can be taken forward quickly if the programme is awarded to the partnership.

Nagpur is not new to aerospace work. The MIHAN special economic zone in the city already houses Dassault Reliance Aerospace Limited, which builds parts for Falcon business jets.

Embraer also credited the state. Bosco da Costa Jr, President and CEO of Embraer Defense and Security, said the choice of site was an early building block for a long-term industrial presence. "Identifying Nagpur as a potential location for an assembly facility is an important step in building a robust, long-term aerospace ecosystem in the country," he said. "We value the support of the Government of Maharashtra and look forward to working closely with our partners to strengthen India's indigenous aerospace and defence capabilities, subject to the C-390 Millennium being selected for the Indian Air Force programme."

The plan is conditional. The line goes ahead only if the Government of India selects the C-390 and places an MTA order.

Mahindra Embraer Nagpur facility to handle assembly and integration

The Mahindra Embraer Nagpur facility would be a state-of-the-art plant, bringing know-how in aircraft assembly, system integration, manufacturing engineering and local supply chain development into India, the companies said.

Subject to the award, the partnership plans to bring Indian aerospace companies into the C-390 programme in stages. That work would cover manufacturing, aftermarket services, training and lifecycle support, in line with the Make in India and Aatmanirbhar Bharat objectives of the Government of India. The division of roles is clear. Embraer would bring its aerospace engineering and aircraft production experience, while Mahindra would contribute its manufacturing base and its wide network of Indian industry.

Sahay said the group was "preparing the industrial ecosystem required to support the programme at scale."

The companies added that they will keep working with the Government of India, the Indian aerospace industry and the Government of Maharashtra as preparations continue.

C-390 Millennium in the IAF Medium Transport Aircraft race

The MTA programme is the Indian Air Force's plan for a new fleet of medium transport aircraft, with a large share to be built in India. According to reports at the time, the Ministry of Defence issued the request for proposal in August for around 60 aircraft to replace the ageing An-32 fleet.

The C-390 is one of several contenders. Tata Advanced Systems and Lockheed Martin are offering the C-130J, a type already in IAF service, and the Tata Lockheed Martin MTA bid draws on the Hyderabad plant that builds C-130J tail sections.

Embraer already has a footprint in the IAF. The Netra AEW&C aircraft, developed by DRDO, flies on the Embraer ERJ 145 jet.

Private sector final assembly of military transport aircraft has also started in India. The first Made in India C-295 took to the air from the Tata line at Vadodara in June this year.

C-390 Millennium carries up to 26 tonnes

The C-390 Millennium is a multi-mission military transport aircraft. It is built for troop and cargo transport, airdrops, medical evacuation, search and rescue, firefighting and humanitarian missions.

It can carry a payload of up to 26 tonnes and is designed to operate from temporary or unpaved runways. The aircraft is in service with the Brazilian Air Force and on order for several European air forces.

Mahindra and Embraer partnership dates to February 2024

Mahindra and Embraer first signed an MoU in February 2024. In October 2025 they entered into a Strategic Cooperation Agreement to jointly offer the C-390 for the MTA programme, covering industrialisation, local manufacturing, assembly, supply chain development and maintenance, repair and overhaul (MRO) work in India.

In February 2026, the two companies announced plans to work towards setting up a C-390 Millennium MRO capability in India, also subject to the aircraft's selection under the MTA programme.