Mahindra Group on Thursday said it is in preparatory discussions with Brazilian aircraft maker Embraer to create an industrial and support ecosystem for the military transport and aerial refuelling aircraft C-390 Millennium in India.

The two companies are jointly pursuing the Indian Air Force Medium Transport Aircraft (MTA) programme, Mahindra Group said.

As part of their ongoing preparations, Mahindra and Embraer are working with the Maharashtra government and have identified Nagpur for a potential final assembly line for Embraer C-390 Millennium aircraft production in India, it added.

Embraer and Mahindra entered into a strategic cooperation agreement in October last year to jointly advance the C-390 Millennium for the IAF's MTA programme, building on their earlier initial pact, signed in February 2024.

The agreement envisages collaboration on industrialisation, local manufacturing, assembly, supply chain development and MRO activities in India. In February 2026, the companies also announced plans to work on establishing a C-390 Millennium MRO capability in India, subject to the aircraft's selection under the MTA programme.

The proposed facility would support local assembly and industrialisation of the aircraft in India, subject to Embraer C-390 Millennium being selected by the Indian government and an order being placed under the IAF's MTA programme, the company said.

The companies are working closely with the Maharashtra government on completion of the associated processes, with the objective of ensuring that the required industrial infrastructure can be progressed expeditiously if the programme is awarded to the partnership, it noted.

"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.

"As we work with Embraer on the C-390 Millennium, we are preparing the industrial ecosystem required to support the programme at scale. Nagpur offers a compelling opportunity for such a capability." Sahay also said the Maharashtra government has "expeditiously" allotted the land in Nagpur, and it is also helping with related requirements.

The proposed Nagpur facility would be a state-of-the-art facility in India, bringing know-how on aircraft assembly, system integration, manufacturing engineering, local supply chain development and others into the country.

Subject to the programme award, the partnership intends to progressively integrate Indian aerospace companies into the C-390 Millennium ecosystem to deliver manufacturing, aftermarket services, training and lifecycle support, in line with the Indian government's Make in India and Atmanirbhar Bharat objectives, the company said.

"These preparations are, of course, subject to the selection of the C-390 Millennium by the Indian government and the placement of the IAF order," Sahay said.

"Embraer is pleased to deepen its partnership with Mahindra as we advance our preparations to bring the C-390 Millennium's industrial capabilities to India. Identifying Nagpur as a potential location for an assembly facility is an important step in building a robust, long-term aerospace ecosystem in the country," said Bosco da Costa Jr., President and CEO of Embraer Defense & Security.

Embraer values the support of the Maharashtra government and looks forward to working closely with its partners to strengthen India's indigenous aerospace and defence capabilities, "subject to the C-390 Millennium being selected for the Indian Air Force programme", he said.

The C-390 Millennium is a multi-mission military transport aircraft designed to perform a range of missions, including troop and cargo transport, airdrop operations, medical evacuation, search and rescue, firefighting and humanitarian missions.

The aircraft has a payload capacity of up to 26 tonnes and is designed to operate from temporary or unpaved runways.

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, the company said.

The companies will continue to engage with the Indian government, the Indian aerospace ecosystem and the Maharashtra government as they progress preparations for the programme, it said.