The Indian Ministry of Defence issued a request for proposals on August 12, 2026, for 60 medium transport aircraft, formally opening a procurement competition estimated at approximately 1 trillion rupees ($10.5 billion). The program aims to secure a new generation of transport aircraft for the Indian Air Force to replace its ageing An-32 and Il-76 fleets.

The tender was issued to five Indian companies: Tata Advanced Systems, Mahindra, Adani Defence and Aerospace, Hindustan Aeronautics Limited, and Reliance Defence. Each of these domestic entities is expected to form a partnership with a foreign aircraft manufacturer to submit their respective bids.

The technical requirements for the procurement program specify an aircraft payload capacity in the 18 to 30-ton class. This range positions Lockheed Martin's C-130J and Embraer's C-390 Millennium as the primary contenders. Airbus had previously proposed the A400M, though at approximately 37 tons, the aircraft exceeds the stated payload ceiling. The C-130J-30 Super Hercules offers a payload capacity of approximately 19 tons, near the lower limit of the requirement, while the C-390 offers about 26 tons, placing it near the top of the specified range.

Two bid pairings have already been made public. Tata Advanced Systems signed a teaming agreement with Lockheed Martin on September 10, 2024, to offer the C-130J-30 Super Hercules. Meanwhile, Mahindra has been collaborating with Embraer on the C-390 since signing a memorandum of understanding in New Delhi on February 9, 2024. The other three Indian tender recipients have not yet publicly identified their foreign aerospace partners.

Under the terms of the tender, an initial tranche of aircraft will be delivered in flyaway condition, while the remaining units must be built within India. The winning partnership will be required to establish a final assembly line and maintenance, repair, and overhaul capabilities inside the country. Following a technical evaluation, the bids will undergo field trials, which will include testing at high-altitude and semi-prepared airstrips, such as the Advanced Landing Grounds in Ladakh and the northeastern regions.