Embraer and Mahindra have identified Nagpur for a potential C-390 Millennium final assembly line. The proposed facility depends on the Indian Air Force selecting the aircraft and placing an order.

Nagpur has emerged as the proposed Indian home for a possible C-390 Millennium aircraft assembly line, as Brazilian aerospace company Embraer and India’s Mahindra Group pursue a major Indian Air Force transport-aircraft programme.
The announcement is a step in the companies’ industrial planning, but it is not a confirmed aircraft production deal. Embraer says the Nagpur facility would go ahead only if the Government of India selects the C-390 for the Indian Air Force’s Medium Transport Aircraft programme and places an order with the partnership. (Embraer’s announcement; Mahindra newsroom)
That condition is central to the story. The companies are preparing a local manufacturing proposition while the aircraft competition is underway. They have not announced a final production contract, a construction timetable or a date for the first Indian-assembled aircraft.
What Embraer and Mahindra announced
In a 1 October 2026 statement, Embraer and Mahindra said they had identified Nagpur as the potential location for a Final Assembly Line, or FAL, for the C-390 Millennium. The companies said they are working with the Maharashtra government on the related processes and industrial infrastructure.
Mahindra’s representative thanked the state government for allotting land in Nagpur and assisting with requirements. The public announcement, however, did not provide a plot address, the facility’s cost or production capacity, or a construction and commissioning schedule.
The proposed Nagpur facility could support aircraft assembly and industrialisation in India. The partners say the wider plan could also involve Indian suppliers, manufacturing engineering, systems integration, training and long-term support. Those are stated ambitions; their scale will depend on the outcome of the procurement and the agreements that follow.
From memorandum to strategic cooperation
The Embraer-Mahindra partnership has developed in stages. The companies signed a memorandum of understanding in February 2024 to work together on the C-390 Millennium bid for the Indian Air Force’s upcoming Medium Transport Aircraft procurement.
In October 2025, they signed a Strategic Cooperation Agreement. That agreement widened their cooperation to include joint marketing, industrialisation and exploration of local manufacturing, assembly, supply-chain and maintenance, repair and overhaul (MRO) opportunities. It was a framework for pursuing the Indian programme not an award from the Indian government. (2025 agreement announcement)
In February 2026, the two companies separately announced plans to work towards establishing C-390 MRO capability in India, again conditional on the aircraft being selected. Their October announcement identifies a potential location for final assembly, while the MRO plan concerns maintenance and support after aircraft enter service.
The Indian Air Force competition is the deciding factor
The Defence Acquisition Council gave Acceptance of Necessity to procure Medium Transport Aircraft for the Indian Air Force on 27 March 2026. The Ministry of Defence said the aircraft would help replace the AN-32 and IL-76 transport fleet.
The Defence Ministry issued a request for proposals for 60 aircraft in August, according to contemporaneous reporting by Hindustan Times and The Times of India. Those reports described an estimated programme value of about ₹1 lakh crore; that figure is a reported estimate, not the price of an Embraer-Mahindra contract.
The procurement is competitive. The IAF must assess the aircraft against its operational requirements and the terms of the tender. Until a winner is chosen and a contract is placed, the Nagpur line remains a proposal attached to one bid.
What the C-390 brings to the proposal
The C-390 Millennium is a twin-engine military transport aircraft designed for cargo and troop transport, airdrops, medical evacuation, search and rescue, firefighting and humanitarian operations. Embraer lists a maximum payload of 26 metric tonnes and a maximum cruise speed of 470 knots. The company also says the aircraft can operate from temporary or unpaved runways.
These are manufacturer-published specifications, not a decision by the IAF that the aircraft meets every requirement. The Indian Air Force’s assessment will determine whether the platform fits the mission, operating environment, support needs and commercial terms of the competition.
What Nagpur could gain and what is not yet known
If the C-390 is selected and the project advances, a Nagpur assembly line could create aircraft-manufacturing work and give Indian suppliers a route into Embraer’s production and support network. The partnership has also described plans for local MRO, training and lifecycle support. The companies have not yet published firm figures for jobs, supplier participation, local content, aircraft output or delivery dates.
Those details matter because “assembly in India” can describe different levels of industrial participation. The value of the Nagpur proposal will ultimately depend on the work carried out locally, the skills and technology transferred, how much of the supply chain is built in India, and whether support capacity is available throughout the aircraft’s service life.
Nagpur’s selection therefore signals preparation, not a guaranteed aerospace hub. The next meaningful milestones are the procurement decision, the contract terms, the final site and facility plan, and a disclosed schedule for production and support.
The bottom line
Embraer and Mahindra have taken a concrete planning step by identifying Nagpur for a potential C-390 Millennium final assembly line. But the aircraft has not yet been selected for the Indian Air Force programme, and no production contract has been announced.
For now, the Nagpur facility is a conditional industrial proposal. Its future depends on the IAF competition—and on the final agreement that would turn the partners’ plans into local manufacturing.
Frequently asked questions
Is the C-390 Millennium assembly line confirmed for Nagpur?
No. Embraer and Mahindra have identified Nagpur as a potential location. They say the facility depends on the C-390 being selected for the IAF programme and an order being placed.
Has India ordered the C-390 Millennium?
The cited announcements describe Embraer and Mahindra’s bid for the Indian Air Force programme. They do not announce that India has selected or ordered the aircraft.
What is the Indian Air Force’s Medium Transport Aircraft programme?
It is a Ministry of Defence procurement programme for transport aircraft for the IAF. The Defence Ministry says the new aircraft are intended to help replace the AN-32 and IL-76 fleets.
What else are Embraer and Mahindra proposing in India?
Alongside potential local assembly, the companies have announced plans to pursue local suppliers and an MRO capability, subject to the C-390 being selected.


