India has reportedly issued a major tender for 60 Medium Transport Aircraft (MTA) for the Indian Air Force. The programme could be worth around ₹1 lakh crore.
It is reported that the Ministry of Defence sent the tender to several Indian companies. These reportedly include Tata Advanced Systems, Mahindra Defence and Hindustan Aeronautics Limited (HAL).
The tender marks the next major step in a programme that already has formal government approval.
The Defence Acquisition Council approved the procurement of Medium Transport Aircraft on March 27, 2026. Defence Minister Rajnath Singh chaired the meeting.
The Ministry of Defence said the new aircraft would replace elements of the An-32 and IL-76 transport fleets. It said the MTA would meet strategic, tactical and operational airlift requirements.
60 Aircraft Planned Under Make in India Model
According to ANI, the latest tender seeks 60 aircraft, with Indian companies taking the lead role.
Around 20% of the aircraft could arrive in fly-away condition. Indian facilities would manufacture the remaining aircraft under partnerships with global aerospace companies.
The report says the locally produced aircraft would contain more than 60% indigenous content.
This structure would make the MTA programme more than an aircraft purchase. It could create a large aerospace manufacturing ecosystem inside India.
However, the Ministry of Defence has not yet published these specific tender details in a public PIB release. The officially confirmed government announcement covers the MTA procurement approval and its operational purpose.
Mahindra and Embraer Offer the C-390 Millennium
The strongest publicly confirmed industrial partnership involves Mahindra Group and Brazil’s Embraer.
The companies signed a Strategic Cooperation Agreement in October 2025. They specifically created the partnership to pursue the IAF’s Medium Transport Aircraft programme.
Mahindra and Embraer plan to offer the C-390 Millennium.
Their cooperation covers local manufacturing, assembly, supply chains and maintenance facilities. They also want to develop India as a regional C-390 production and support hub.
The C-390 can carry a payload of up to 26 tonnes. It can transport troops and cargo and conduct medical evacuation missions.
The aircraft can also perform aerial refuelling when equipped for the role. It can operate from temporary and unpaved runways.
This versatility makes the C-390 a serious contender for India’s requirement.
Tata and Lockheed Martin Position the C-130J
Tata Advanced Systems and Lockheed Martin have also formally positioned themselves for the MTA programme.
The two companies signed a teaming agreement in September 2024. Their agreement specifically covers potential Indian production of the C-130J Super Hercules for the MTA competition.
Lockheed Martin has said it would establish additional C-130J production and assembly capacity in India if it wins the programme.
India already has an established industrial base for the aircraft.
Tata Lockheed Martin Aerostructures Limited manufactures C-130J empennages in Hyderabad. The joint venture supplies these assemblies for new Super Hercules aircraft worldwide.
The Indian Air Force also operates 12 C-130Js. This gives the service experience with the aircraft, its support requirements and its operational capabilities.
The Tata-Lockheed partnership could therefore build on an existing manufacturing and operational relationship.
HAL Also Reportedly Receives Tender
ANI reports that Hindustan Aeronautics Limited is another Indian company that received the tender.
HAL already has decades of experience in military aircraft production, maintenance and overhaul. Its Transport Aircraft Division operates from Kanpur.
However, no publicly available Ministry of Defence announcement currently identifies HAL’s foreign partner or proposed aircraft for this MTA tender.
The reported participation of HAL should therefore remain attributed to ANI until the government or company provides further details.
Replacing Two Very Different Transport Fleets
The official description of the MTA programme makes its importance particularly clear.
The Defence Ministry says the new aircraft will help replace both the An-32 and IL-76 fleets.
These aircraft currently occupy different parts of the IAF’s transport structure.
The An-32 has long supported tactical transport missions, including operations from difficult airfields. The much larger IL-76 provides heavy strategic airlift.
A modern MTA fleet would sit between India’s lighter transports and its heavy airlifters. It could provide greater flexibility for moving troops, equipment and supplies.
The aircraft could also support humanitarian relief and rapid deployment missions.
Another Major Step in India’s Military Aircraft Manufacturing
The MTA programme could become one of India’s largest military aviation manufacturing projects.
India has already created a private-sector aircraft production ecosystem through the C-295 programme.
Under that programme, Airbus and Tata are producing transport aircraft in India. The Ministry of Defence contracted 56 C-295MW aircraft for the IAF, with 40 scheduled for manufacture in India.
The MTA programme would move Indian industry into a larger and more demanding aircraft category.
Unlike a straightforward import programme, the reported tender places Indian companies at the centre of production.
That could create opportunities across aerostructures, avionics, engines, maintenance and component manufacturing.
Competition Could Reshape India’s Aerospace Industry
The contest also brings together different international aerospace partnerships.
Mahindra and Embraer have built their proposal around the newer C-390 Millennium. Tata and Lockheed Martin bring an established C-130J partnership and an existing Indian manufacturing base.
HAL adds India’s largest state-owned aerospace manufacturer to the competition, according to ANI.
The final choice will involve more than aircraft performance.
India will also evaluate technology transfer, indigenous content, lifecycle costs and manufacturing capability. Long-term maintenance and supply-chain security will carry significant weight.
A Strategic Airlift and Make in India Programme
The MTA acquisition reflects two parallel priorities for the Indian Air Force.
The first involves replacing ageing transport aircraft and strengthening airlift capacity. The second involves building more advanced aircraft inside India.
The Defence Acquisition Council has already confirmed the operational requirement.
The reported ₹1 lakh crore tender now suggests that the programme is moving toward industrial competition.
If the reported 60-aircraft structure proceeds, most of the fleet could emerge from Indian production lines.
That would make the Medium Transport Aircraft programme not only an IAF modernisation project, but also a major test of India’s ambition to become a global military aerospace manufacturing centre.
REFERENCES
- Press Information Bureau (PIB), Ministry of Defence
“DAC clears proposals worth Rs 2.38 lakh crore to augment defence capabilities”
27 March 2026
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2246125&lang=1®=3 - Embraer
“Embraer and Mahindra Group Forge Strategic Alliance to Introduce the C-390 Millennium to India”
17 October 2025
https://www.embraer.com/media-center/en?detail=22551&mediatype=NEWS&page=1 - Embraer
“Embraer and Mahindra Group Advance Localization Strategy in India with Planned C-390 Millennium MRO Capability”
19 February 2026
https://www.embraer.com/media-center/en/?detail=24356-Embraer-and-Mahindra-Group-Advance-Localization-Strategy-in-India-with-Planned-C-390-Millennium-MRO-Capability&mediatype=NEWS - Lockheed Martin
“Lockheed Martin and Tata Advanced Systems Announce Agreement to Expand C-130J Super Hercules Opportunities in India”
10 September 2024
https://news.lockheedmartin.com/2024-09-10-Lockheed-Martin-and-Tata-Advanced-Systems-Announce-Agreement-to-Expand-C-130J-Super-Hercules-Opportunities-in-India - Press Information Bureau (PIB), Ministry of Defence
“Transport Aircraft for Indian Air Force to be made in India by Airbus Defence & TATA consortium”
27 October 2022
https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1871267&lang=2®=48 - Press Information Bureau (PIB), Ministry of Defence
“Cabinet approves procurement of 56 C-295MW transport aircraft for Indian Air Force”
8 September 2021
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1753260
You may also like
-
L&T Eyes Rare-Earth Magnet Manufacturing in India as Supply Chain Push Accelerates
-
India’s Financial Inclusion Index Rises to 70 as Banking and Digital Access Expand Nationwide
-
India Develops 75 Lighthouses as Tourism Destinations to Showcase Maritime Heritage
-
Sheshnaag-150: India’s 1,000-km Swarming Deep-Strike Drone Takes Shape
-
India Pushes Coastal Shipping and Inland Waterways as National Waterway Cargo Hits 218 Million Tonnes
