Chennai: Mahindra Group and Brazilian aerospace major Embraer have identified Nagpur in Maharashtra as the potential site for a Final Assembly Line (FAL) for the C-390 Millennium military transport aircraft in India.
The two companies said they are working to complete necessary processes so that the infrastructure can be set up quickly if the contract is awarded. Mahindra specifically thanked Maharashtra for expeditiously allotting land and facilitating the project.
The announcement has triggered sharp criticism of the Tamilaga Vettri Kazhagam (TVK), with the opposition parties have repeatedly accused it of either losing projects or is at risk of losing several major industrial projects to other states, particularly Andhra Pradesh.
The proposed facility will handle aircraft assembly, systems integration, manufacturing engineering and local supply-chain development. It will proceed only if the C-390 is selected for the Indian Air Force’s Medium Transport Aircraft (MTA) programme.
The IAF is seeking 60 aircraft to replace ageing An-32s and some Il-76s, making it one of the world’s largest transport aircraft deals.
Neither Embraer nor Mahindra has publicly detailed why Nagpur was preferred over other locations, beyond noting the Maharashtra government’s proactive support. When contacted by ThePrint, sources from the Tamil Nadu industries department did not comment on the matter.
What has drawn the ire of opposition parties is that the previous Dravida Munnetra Kazhagam (DMK) government showcased Sulur and Hosur, which form part of the southern state’s established aerospace and defence manufacturing ecosystem, to Embraer’s team
Locations such as Sulur and Hosur, which form part of Tamil Nadu’s established aerospace and defence manufacturing ecosystem, were showcased to Embraer’s team under the previous DMK government..
Earlier, Royal Enfield’s expansion plan valued at over Rs 2,200 crore that finally went to the Tirupati region in Andhra Pradesh, was cited as a loss for Tamil Nadu. Similarly, Apollo Tyres’ new capacity plans are linked to land the company already owned near Sri City in Andhra Pradesh.
The DMK alleged that while its government built early engagement, the current administration failed to sustain high-level pursuit. Maharashtra, it said, demonstrated speed in land allotment.
Former Industries Minister T.R.B. Rajaa said that under the TVK government, a project that could bring aircraft assembly, systems integration, manufacturing engineering and an entire aerospace supply chain around, has gone out of Tamil Nadu’s hands.
“This isn’t just another factory. Embraer expects India could eventually require 60–80 C-390 aircraft. Maharashtra moved fast. Mahindra specifically thanked its Government for ‘expeditiously allotting the land’ and facilitating the project. So what happened to Tamil Nadu?” he wrote on X, blaming the TVK for being inefficient in following up on the project.
“Tamil Nadu has the aerospace ecosystem, engineering talent and manufacturing depth to compete for projects like this. Investment pipelines don’t run on autopilot. They need relentless follow-up.”
He further sought an explanation from Chief Minister Vijay as to why the “projects we spent years cultivating” were not being pursued at the highest level.
Rajaa highlighted that Embraer is preparing a larger manufacturing footprint in India, including potential work on regional jets, and argued that Tamil Nadu should have aggressively fought for the opportunity.
The TVK government, Bharatiya Janata Party (BJP) state chief spokesperson Narayanan Thirupathy said, has shown that it cannot hold an investment once it is within reach.
“The line is an investment of Rs 6,000 crore and about 1,000 jobs, tied to an Indian Air Force tender of about Rs 1 lakh crore for 60 aircraft. Sulur and Hosur had already been offered. Tamil Nadu had the aerospace base. What it did not have was a government that followed the project through to a decision? Maharashtra allotted the land and closed the file,” he posted on X.
The TVK government has stopped short, Thirupathy alleged.
“The factory will be built if the Air Force selects the aircraft, but the site has already gone to the state that acted. The cost is a factory and jobs that should have been argued for here. The BJP condemns this inability. Tamil Nadu’s industry cannot be left to a government that lets a project of this size walk to some other state despite having all the resources.”
Industries Minister S. Keerthana has been maintaining that no investment project has left Tamil Nadu in the months since the administration assumed office in May.
Most of the projects being cited by the opposition were already committed to other states through MoUs signed months or years earlier under the previous DMK rule, she said.
Keerthana has accused the previous DMK government of losing 25 major projects worth approximately Rs 3.3 lakh crore, potentially generating over two lakh jobs to seven other states due to delays in clearances and alleged demands for “commission”.
However, the specific list of the projects was not shared while she named Tata Electronics’ semiconductor fabrication project, Micron Technology’s ATMP facility and Suzuki Motor’s automobile investments moving to Gujarat, JSW’s EV battery and smelting project shifting to Odisha, and a Toyota Motor project going to Maharashtra.
(Edited by Tony Rai)
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