Embraer and Mahindra Group have identified Nagpur, in India's Maharashtra state, as the location for a potential C-390 Millennium final assembly line, anchoring their joint bid for the Indian Air Force's 60-aircraft Medium Transport Aircraft (MTA) competition.

The two partners are working with the Government of Maharashtra to complete the associated site and permitting processes, so that industrial infrastructure can move quickly if New Delhi selects the C-390 under the program. Vinod Sahay, who sits on the Mahindra Group's executive board, thanked the state government for "expeditiously allotting the land in Nagpur."

What would the Nagpur facility cover?

The proposed site would handle aircraft assembly, system integration, manufacturing engineering and local supply chain development. If the partners secure the MTA program, they intend to bring Indian aerospace companies into C-390 manufacturing, aftermarket services, training and lifecycle support on a phased basis.

Bosco da Costa Junior, president and CEO of Embraer Defense & Security, described the Nagpur decision as an important step toward building a long-term aerospace ecosystem in India. The framing treats industrial commitment as a scoring item alongside price and performance in the MTA evaluation.

Where does the MTA competition stand?

India's Defense Acquisition Council approved the MTA procurement on March 27, 2026, with the new aircraft tasked to replace the IAF's An-32 tactical transports and Il-76 strategic lifters. The Ministry of Defense followed with a request for proposals on August 12, 2026, covering 60 aircraft.

Lockheed Martin and Tata Advanced Systems are offering the C-130J-30 Super Hercules against the C-390. Lockheed has also promised that, if it wins the MTA contract, it would add C-130J production and assembly capacity in India, a parallel offset package to what Embraer and Mahindra are assembling around Nagpur.

How does the Embraer-Mahindra partnership build out?

The two sides signed a strategic cooperation agreement in October 2025, building on a February 2024 memorandum of understanding. In February 2026, they also outlined plans for an Indian C-390 maintenance, repair and overhaul capability, giving a Nagpur-centered program both assembly and through-life support legs.

That combined structure turns the MTA outcome into the pivot for the partnership's industrial plan. A contract award would activate the Nagpur line and integrate Indian tier-one suppliers into the global C-390 industrial base. A loss would leave the Nagpur plot and the Indian MRO capability as contingent assets awaiting a firm backlog.

What network and cost consequences follow?

Indian final assembly would localize airframe work, systems integration and component sourcing inside Maharashtra, with unit-cost and delivery-schedule benefits driven by local labor and supplier pricing. A competition loss, by contrast, leaves the Nagpur plot as paper infrastructure and the February 2026 MRO plan without a launch customer.

The IAF's 60-aircraft requirement gives the C-390 a sizeable production runway inside India, and the terms of any eventual contract, covering delivery cadence, localization thresholds and offset obligations, will determine whether Nagpur activates as a working final assembly site or remains a strategic option on paper.