A significant ethanol production venture in Rajasthan, valued at Rs 450 crore, is on the verge of shutting down its operations in the state and moving to Madhya Pradesh. The decision comes after the project faced intense opposition from local farmers concerned about environmental damage.
Project Halted Amidst Violent Farmer Protests
Work on the ambitious grain-based ethanol plant came to a standstill just weeks after it was met with violent protests by farmers in Hanumangarh district. The primary fears driving the agitation were the potential for the facility to damage soil fertility and increase pollution levels in the agricultural region. The farmers were apprehensive that industrial effluents and waste from the plant could contaminate their farmland and precious groundwater resources.
From Clearance to Controversy
Interestingly, the project had received the necessary clearances during the tenure of the Ashok Gehlot-led Congress government in 2023. However, by December 2025, it was embroiled in serious trouble as the allegations regarding environmental contamination gained momentum. The plant, being developed by Chandigarh-based Dune Ethanol Private Limited in Rathi Khera village, was designed to be a major industrial setup.
The key specifications of the now-relocating project include:
- A sprawling area of 40 acres (16.19 hectares).
- A planned production capacity of 1,320 KLPD (kilo litres per day) of grain-based ethanol.
- An integrated 40 MW co-generation power plant.
- Reliance on locally sourced raw materials like rice, maize, and straw.
Company Cites Infeasibility, Chooses Relocation
Faced with sustained local resistance, the company has concluded that continuing work at the Hanumangarh site is no longer practical. A representative from the company stated, "Given the circumstances, continuing work here is not feasible. We will comply with all procedures required for relocation." The firm is now focused on completing the procedural formalities to wind up its Rajasthan operations and establish the project in Madhya Pradesh.
This move marks a significant economic shift, with Rajasthan losing a major industrial investment to a neighboring state. It also highlights the growing power of community activism and environmental concerns in influencing large-scale industrial projects in India's hinterlands.
