A significant Rs 450-crore ethanol production facility under construction in Rajasthan's Hanumangarh district is poised to completely shut down its operations in the state. The plant's developers are now finalizing procedural formalities to move the entire project to Madhya Pradesh, a company representative confirmed on Monday. This decision comes after months of sustained and sometimes violent opposition from local farmers deeply concerned about environmental damage.
Project Halts Amid Fears for Land and Water
The ambitious project, first approved during the Congress government led by Ashok Gehlot in 2023, became a major flashpoint again in December 2025. Local agricultural communities voiced strong apprehensions that industrial effluents and waste from the plant would severely contaminate their farmland and precious groundwater resources, threatening soil fertility and increasing pollution. These fears ultimately led to a halt in construction work just weeks after it began.
A representative of the private company, speaking anonymously, stated, "Given the circumstances, continuing work here is not feasible. We will comply with all procedures required for relocation." The official further explained that despite efforts, they could not convince the farmers about the plant's advanced environmental safeguards.
Details of the Now-Relocating Facility
The ethanol plant was being developed on a 40-acre plot in Rathi Khera village, located in the Tibbi tehsil of Hanumangarh district. The Chandigarh-based private firm had committed an investment of approximately Rs 450 crore to the project. Its planned capacity was substantial, aiming to produce 1,320 kilolitres of grain-based ethanol daily. The integrated facility also included a 40 MW co-generation power plant.
The company's plan involved sourcing raw materials like rice, maize, and straw locally to produce ethanol, which is a key component of India's Ethanol Blended Petrol (EBP) programme. This national initiative aims to promote cleaner fuel alternatives and reduce the country's dependence on imported fossil fuels. The official lamented the loss of potential benefits, noting the project would have created numerous jobs and ensured fair prices for local agricultural produce.
Farmers Vow to Continue Agitation Until Official Cancellation
Reacting to the news of the potential relocation, the protesting farmers have declared that their agitation will persist until the project is officially and formally scrapped in Rajasthan. Girdhari Lal, a farmer from Tibbi, clarified their stance, saying, "We're not against industry, but it cannot be at the cost of our land and water. Until there is a written order cancelling the plant, our protest will continue."
Farmers have claimed that their repeated appeals in the past regarding risks of groundwater contamination, crop loss, and air pollution were consistently ignored by authorities. The protests reached a peak on December 10, 2025, when a massive mahapanchayat gathered thousands of farmers in Tibbi. Following the meeting, groups marched to the construction site and partially dismantled the plant's boundary wall.
The situation escalated into clashes when police used batons and tear gas to disperse the crowd. The confrontation resulted in injuries to over 50 people, including both farmers and police personnel, and damage to several vehicles. The district administration intervened and halted all work at the site on the same day. Subsequent talks held on December 12 failed to yield any consensus, leading the Bharatiya Kisan Union to announce on December 17 that the agitation would continue indefinitely.
Attempts to reach Hanumangarh district collector Khushaal Yadav for an official comment were unsuccessful. The impending exit of the ethanol plant marks a significant turn of events, highlighting the growing tensions between large-scale industrial development aimed at national energy goals and the immediate environmental concerns of local communities.
