Brazilian aerospace firm Embraer and the Mahindra Group are in preparatory discussions to create an industrial and support ecosystem for the military transport and aerial refuelling aircraft C-390 Millennium in India. According to Business Standard, the proposed facility is contingent on the aircraft being selected by the Government of India and receiving an order under the Indian Air Force's (IAF) Medium Transport Aircraft (MTA) procurement programme. Working in coordination with the Maharashtra government, the two partners have identified Nagpur, Maharashtra, as the location for a potential Final Assembly Line (FAL) for the C-390 Millennium military transport aircraft. The state government has expeditiously allotted land in Nagpur for the prospective facility and is assisting with related requirements to ensure the required industrial infrastructure can be progressed expeditiously if the programme is awarded to the partnership.
The proposed Nagpur plant is intended to cover aircraft assembly, system integration, manufacturing engineering and local supply chain integration. As reported by Business Standard, if awarded the contract, Mahindra and Embraer plan to integrate domestic aerospace suppliers for manufacturing, aftermarket services, maintenance, repair and overhaul (MRO), training and lifecycle support, in line with India's Atmanirbhar Bharat and Make in India initiatives. The partnership aims to combine Embraer's original equipment manufacturing and engineering expertise with Mahindra's domestic industrial manufacturing base. Vinod Sahay, Member of the Group Executive Board, Mahindra Group, emphasized that "Mahindra is committed to building a globally competitive aerospace ecosystem in India and to creating meaningful manufacturing and technology capabilities that contribute to the country's Atmanirbhar Bharat ambitions."
The proposed facility builds on earlier agreements between Mahindra and Embraer. According to Business Standard, the two companies initially signed a Memorandum of Understanding (MoU) in February 2024, followed by a Strategic Cooperation Agreement in October 2025 to jointly pursue the IAF's MTA contract. In February 2026, the partners expanded their framework to include plans for developing dedicated local C-390 MRO capabilities in India, subject to the aircraft being selected under the programme. The strategic cooperation agreement envisages collaboration on industrialisation, local manufacturing, assembly, supply chain development and MRO activities in India. The collaboration will utilize Embraer's KC-390 Millennium jet for the military transport aircraft requirement, with the aircraft offering superior performance metrics including 93% availability and 99% mission accomplishment.
The Embraer C-390 Millennium is a multi-mission tactical transport aircraft with a maximum payload capacity of 26 tonnes and the capability to operate from temporary or unpaved runways. As reported by Business Standard, its missions include troop and cargo transport, aerial refuelling, medical evacuation, search and rescue, disaster response and aerial firefighting. The aircraft has already demonstrated operations from unpaved desert runways during a one-week trial with the UAE Air Force. The programme is designed to replace the Indian Air Force's ageing transport fleet with modern aircraft capabilities, with an option to add 50% more aircraft beyond the initial 60-unit requirement. The aircraft is designed to perform troop and cargo transport, airdrop operations, medical evacuation, search and rescue, firefighting and humanitarian missions.
The KC-390 platform has established itself as a proven military transport solution with a global order of around 70 aircraft, including new orders from the UAE for 10 units and Colombia for 2 more. As reported by Moneycontrol, the aircraft has a global order of around 70 aircraft, including new orders from the UAE for 10 units and Colombia for 2 more. Five companies, including Mahindra, Tata, Hindustan Aeronautics Limited, Reliance Defence and Adani, have received the Request for Proposal from the Defence Ministry for the Indian Air Force programme, indicating strong competition in the tender process. The Request for Proposal for the military transport aircraft has already been issued, indicating the program's progression toward procurement. The proposed industrialisation programme would leverage Embraer's aerospace engineering and aircraft manufacturing expertise with Mahindra's established manufacturing capabilities and extensive Indian industrial ecosystem.
