The Indian Ministry of Defence formally issued a Request for Proposal (RFP) on August 12, 2026, officially moving the Multi-Role Transport Aircraft (MTA) programme from technical evaluation into the competitive bidding stage. The contest covers 60 new medium transport aircraft for the Indian Air Force (IAF) with an estimated total value of approximately INR 1 trillion ($10.5 billion). The procurement aims to replace the air force's ageing fleet of Soviet-origin An-32 aircraft, with options for additional aircraft in subsequent phases.
The operational requirements specify an aircraft payload capacity within the 18 to 30-tonne class, placing Embraer's C-390 Millennium and Lockheed Martin's C-130J Super Hercules at the centre of the competition. Domestic defence partners have formed strategic alliances with foreign original equipment manufacturers to submit bids. Tata Advanced Systems has teamed up with Lockheed Martin, while Mahindra Defence has partnered with Embraer to contest the contract.
In addition to the established pairings, the Ministry of Defence also issued the RFP to Adani Defence and Aerospace, Hindustan Aeronautics Ltd, and Reliance Defence. According to defence ministry sources, these three domestic firms have not yet publicly identified their international aircraft manufacturing partners for the transport fleet programme.
The procurement structure combines direct deliveries with localized manufacturing in India. Initial aircraft will be delivered in fly-away condition, while remaining units will be produced locally with a minimum indigenous content requirement of 40%, which is scheduled to rise to 60% in phases. The winning foreign manufacturer and its Indian partner will also be required to establish a final assembly line along with maintenance, repair, and overhaul (MRO) infrastructure in the country.
