India has formally launched the competition for 60 new military transport aircraft, bringing the long-discussed Medium Transport Aircraft (MTA) program into its selection phase after years of studies and preparations.
The Ministry of Defence issued the Request for Proposal (RFP) on Wednesday for the Indian Air Force's (IAF) program. The acquisition is estimated at around Rs 1 lakh crore, approximately US$11 billion, and is primarily intended to replace the service's Soviet-designed Antonov An-32 fleet.
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The competition is understood to involve three aircraft: the Embraer C-390 Millennium, Lockheed Martin C-130J Super Hercules and Airbus A400M. Previous reports that the A400M could fall behind because of its higher acquisition and operating costs remain speculation, and Airbus continues in the tender.
The program goes well beyond the purchase of imported aircraft. The RFP was issued to Indian companies that will team with the foreign manufacturers and requires substantial local production and technology transfer. Embraer has partnered with Mahindra Defence Systems, Airbus has its existing industrial relationship with Tata, and Lockheed Martin also works with Tata in India.
Under the current plan, 12 aircraft would be delivered in flyaway condition and another 48 manufactured and assembled in India. Local content is expected to progressively exceed 50%, with the program covering structures, wiring, avionics integration and other components. India also wants domestic maintenance and engine overhaul capabilities.
The requirement calls for an aircraft in the 18-30-tonne payload category, placing the C-390 near the upper end and the C-130J near the lower limit. The A400M exceeds that range, with a maximum payload of about 37 tonnes, but remains eligible for the competition. The Indian Air Force also wants short and unprepared runway capability and operations at high-altitude locations along India's northern and eastern borders.
Airbus and Lockheed already established in India
India already operates the C-130J, giving Lockheed Martin an established presence within the country's military transport fleet. Airbus, meanwhile, is supplying the smaller C-295 under a separate program that includes an assembly line in India.
For Embraer, however, the size and industrial requirements of the MTA competition could have consequences well beyond the 60-aircraft order.
The Brazilian manufacturer currently assembles the C-390 at Gavião Peixoto and expects that plant to have capacity for about 10 aircraft annually by 2030. Embraer CEO Francisco Gomes Neto recently said production could rise beyond that level if opportunities in India and the United States result in additional assembly lines.
The RFP moves that possibility from a long-running sales campaign into an actual competition. The next stages are expected to include evaluation of the commercial and technology-transfer proposals, aircraft trials and negotiations before India selects a winner.
