Embraer and Mahindra pick Nagpur for proposed C-390 assembly line in India

Embraer and Mahindra have picked Nagpur in Maharashtra as the proposed site for a C-390 final assembly line, if the partners are chosen to supply the Indian air force's next medium transport. The two companies are bidding jointly for the Medium Transport Aircraft tender, valued at about INR1 trillion, or $10 billion.

The Brazilian airframer and the Indian manufacturer said they are working closely with the Maharashtra regional government on the proposal, to ensure the infrastructure needed can be progressed quickly if their bid prevails in the competitive evaluation being run in New Delhi. Bosco da Costa Junior, chief executive of Embraer Defense & Security, called the identification of Nagpur as a potential site an important step in building a long-term aerospace ecosystem in the country.

Lockheed Martin, teamed with Indian conglomerate Tata, is offering the C-130J. Airbus could also enter the contest with its A400M transport.

Industrial offsets and local economic effects are expected to weigh heavily in the choice of vendor. India's defence acquisition guidelines generally call for at least 50% locally sourced content on major purchases, though that share can be higher. As with other Indian defence programmes, the first tranche of aircraft would be built by the manufacturer, with the larger part of the order assembled in India by a local partner. The tender covers at least 60 transports intended to replace more than 100 ageing Soviet-era aircraft in service.