Brazilian aerospace manufacturer Embraer and India’s Mahindra Group have identified Nagpur, Maharashtra, as the designated site to establish a Final Assembly Line (FAL) and associated aerospace hub, backed by an estimated ₹6,000 crore planned investment.
Key Highlights of the Proposal
- Anchor Aircraft: The facility is specifically planned to manufacture and assemble the C-390 Millennium multi-mission twin-engine tactical military transport aircraft.
- Scope of the Hub:
- Final Assembly Line (FAL): Local airframe integration, assembly, and flight testing.
- MRO Facility: A domestic Maintenance, Repair, and Overhaul (MRO) center to support the lifecycle of the aircraft in the region.
- Supply Chain & Systems Integration: Progressively bringing domestic tier-1 and tier-2 aerospace component suppliers into the global C-390 supply chain.
- Employment & Ecosystem: Projected to generate approximately 1,000 direct high-skill aerospace engineering jobs and catalyze several thousand indirect jobs across the logistics and supplier base in the Vidarbha region.
- Site Allocation: Land has been earmarked in coordination with the Government of Maharashtra, leveraging Nagpur’s existing central connectivity and expanding aviation/aerospace cluster (MIHAN).
The Critical Context: The IAF MTA Contest
The execution of this investment is strictly contingent on one key condition: winning the Indian Air Force’s (IAF) Medium Transport Aircraft (MTA) procurement contract.
| Parameter | Details |
| Program | Indian Air Force Medium Transport Aircraft (MTA) |
| Fleet Requirement | 40 to 80 aircraft (replacing aging An-32 and complementary to C-130Js) |
| Payload Class | 18 to 30 tonnes (C-390 carries up to 26 tonnes) |
| Mandate | Make in India / Atmanirbhar Bharat with indigenous assembly and high local content |
| Key Competitors | Lockheed Martin & Tata Advanced Systems (offering the C-130J Super Hercules), Airbus Defence and Space (offering the A400M) |
By locking in the land, local partner (Mahindra), site location (Nagpur), and concrete capex numbers upfront, Embraer and Mahindra aim to present a “shovel-ready” industrial offset package to the Ministry of Defence ahead of final bid evaluations.
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