India launches $10.5B tender for 60 medium transport aircraft, pitting C-130J against C-390

India's Ministry of Defence has formally opened a $10.5 billion competition for 60 medium transport aircraft, issuing a request for proposals on August 12, 2026. The tender sets the stage for a contest between Lockheed Martin's C-130J Super Hercules and Embraer's C-390 Millennium, with five Indian companies-Tata Advanced Systems, Mahindra, Adani Defence and Aerospace, Hindustan Aeronautics Limited, and Reliance Defence-expected to lead bids alongside foreign partners.

## Leading contenders and payload capacity

Two partnerships have already been announced. Tata Advanced Systems signed a teaming agreement with Lockheed Martin on September 10, 2024, to offer the C-130J-30 Super Hercules, while Mahindra has collaborated with Embraer on the C-390 since a memorandum of understanding was signed in February 2024. The remaining three Indian companies have not yet disclosed their partners.

The aircraft must meet a payload requirement of 18 to 30 tons, positioning the C-130J-30 at the lower end (19 tons) and the C-390 near the upper limit (26 tons). Airbus previously proposed the A400M, but its 37-ton payload exceeds India's specified ceiling.

| Aircraft | Payload Capacity (tons) | |----------------|-------------------------| | C-130J-30 | 19 | | C-390 Millennium | 26 | | A400M | 37 |

## Local production and indigenous content

The winning bidder will be required to establish a final assembly line and maintenance capability in India. Embraer and Mahindra announced plans for a C-390 maintenance facility in February 2026, anticipating this requirement. While the exact indigenous content targets remain unclear, reports suggest a minimum of 40%, with some accounts indicating a higher threshold above 60%.

## Reduced requirement and evaluation process

The original request for information called for up to 80 aircraft, but the final RFP covers 60, with an option for additional units. Bids will undergo technical evaluation followed by field trials, including high-altitude and semi-prepared airstrips such as the Advanced Landing Grounds in Ladakh and the northeast.

India has previously assembled military transport aircraft domestically, though on a smaller scale. Tata Advanced Systems and Airbus opened a C-295 final assembly line in Vadodara in October 2024, producing 40 of the 56 ordered aircraft. The new program would extend this model to a larger airframe, roughly three times heavier than the C-295.