Short Description
A Rs 450-crore ethanol plant in Rajasthan’s Hanumangarh is set to relocate to Madhya Pradesh after farmer protests. Learn about the project’s implications on farmers and the environment.
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3 minutes
Main Article
The Rs 450-crore ethanol project, initially hailed as a significant boost for commercial activity in Rajasthan’s Hanumangarh district, is on the verge of relocation following intense farmer protests. Dune Ethanol Private Limited, the Chandigarh-based company behind the project, announced plans to move operations to Madhya Pradesh. This decision comes amidst rising tensions and concerns that the ethanol plant could jeopardize local soil fertility and contaminate groundwater through effluents and industrial waste.
The project, which received government clearance under the Ashok Gehlot-led Congress administration in early 2023, generated substantial excitement due to its projected production of 1,320 KLPD of grain-based ethanol and a 40 MW co-generation power facility. However, the situation took a turn in December 2025, when local farmers expressed their fears regarding potential environmental hazards. The backlash included violent protests, compelling the company to reconsider its investment in the region. “Given the circumstances, continuing work here is not feasible. We will comply with all procedures required for relocation,” stated a company representative.
The relocation to Madhya Pradesh represents both a loss and an opportunity. While Rajasthan loses out on potential job creation and economic development through this ethanol project, Madhya Pradesh stands to gain a significant renewable energy venture. The importance of such projects has surged in recent years, particularly as the world moves toward more sustainable energy solutions. Ethanol production, primarily sourced from local grains such as rice, maize, and straw, is seen as a critical step in reducing carbon emissions and promoting environmentally friendly fuel options.
Stakeholders in both regions must now navigate the implications of this relocation. The farmers of Rajasthan are understandably concerned about the legacy of this ethanol venture and its impact on agricultural viability. Conversely, Madhya Pradesh must ensure that it addresses environmental regulations meticulously to mitigate similar concerns that may arise from local agricultural communities.
As the ethanol market continues to evolve, the outcome of this transition will be closely monitored. How Dune Ethanol Private Limited manages this process will likely set a precedent for future sustainable energy projects.
Short Summary
In summary, the Rs 450-crore ethanol project in Rajasthan is relocating to Madhya Pradesh following farmer protests about environmental concerns. This transition highlights the ongoing tensions between agricultural communities and renewable energy initiatives, underlining the need for thoughtful consideration in future projects.
