Embraer and Mahindra Group are planning to invest ₹6,000 crore to establish a final assembly line for the C-390 Millennium military transport aircraft in Nagpur, Maharashtra, if their bid is selected by the Indian Air Force (IAF).
The two companies signed a Memorandum of Understanding (MoU) with the Maharashtra government on Thursday, identifying Nagpur as the proposed location for the facility. The agreement was signed during the state government’s Invest Maharashtra event.
According to a post from Maharashtra Chief Minister Devendra Fadnavis’s office on X, the proposed project is expected to generate an investment of ₹6,000 crore and create around 1,000 jobs.
The IAF is seeking a new medium transport aircraft to replace its ageing fleet of AN-32 and IL-76 aircraft. In August, the Ministry of Defence issued a Request for Proposal (RFP) to major Indian companies, including Tata Group, Mahindra Group, Adani Group and state-owned Hindustan Aeronautics Limited (HAL), inviting technical and financial bids for the programme.
Embraer has partnered with Mahindra Group to offer the C-390 Millennium, while Lockheed Martin has teamed up with Tata Group to offer the C-130J aircraft.
“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,” said Vinod Sahay, Member of the Group Executive Board, Mahindra Group.
Embraer Defense & Security President and CEO Bosco Da Costa Junior said identifying Nagpur as the potential location for the assembly facility marks an important step towards developing a strong and long-term aerospace ecosystem in India.
The proposed facility is expected to be a state-of-the-art manufacturing centre and a key part of a broader industrialisation strategy. According to the companies, it would bring expertise in aircraft assembly, system integration, manufacturing engineering and local supply-chain development to India.
The partnership also plans to gradually integrate Indian aerospace companies into the C-390 Millennium ecosystem. This would include opportunities across manufacturing, aftermarket services, training and lifecycle support, in line with the government’s Make in India and Atmanirbhar Bharat initiatives.
Embraer and Mahindra signed a Strategic Cooperation Agreement in October 2025 to jointly pursue the C-390 Millennium for the IAF’s Medium Transport Aircraft (MTA) programme. The agreement followed an earlier MoU between the two companies signed in February 2024.
