The Rs 450-crore ethanol plant planned by a private company in Hanumangarh district, Rajasthan, is likely to cease operations in the state and shift to Madhya Pradesh once required procedural formalities are completed, a company representative told The Times of India on Monday.
Construction at the site had been halted weeks after violent protests erupted, led by local farmers who feared the project could damage soil fertility and increase pollution. Initially approved by the Ashok Gehlot-led Congress government in 2023, the project regained attention in December 2025 amid concerns that industrial effluents and waste might contaminate farmland and groundwater in the area, according to the news report.
A company official, speaking on condition of anonymity, said continuing the project in Hanumangarh was no longer viable. “Given the circumstances, continuing work here is not feasible. We will comply with all procedures required for relocation,” the official said.
The representative added that attempts to convince farmers that the plant would employ a zero-liquid-discharge system and advanced pollution-control technologies had failed. “The project would have created jobs and ensured fair prices for local agricultural produce,” the official noted.
The ethanol plant, covering 40 acres in Rathi Khera village of Tibbi tehsil, is being developed by a Chandigarh-based company with an investment of around Rs 450 crore. It was designed to produce 1,320 kilolitres of grain-based ethanol daily and include a 40 MW co-generation power plant. The facility would use locally sourced rice, maize, and straw, supporting India’s Ethanol Blended Petrol (EBP) programme, which aims to promote cleaner fuel and reduce imports.
Despite the company’s decision to relocate, farmers protesting the project said their agitation would continue until it is officially cancelled. “We are not against industry, but it cannot come at the cost of our land and water. Until there is a written order scrapping the plant, our protest will continue,” said Girdhari Lal, a farmer from Tibbi.
Tensions escalated on December 10, when a mahapanchayat drew thousands of farmers to Tibbi. Following the meeting, protesters marched to the construction site and tore down parts of the boundary wall. Police intervened with batons and tear gas, leading to clashes that injured more than 50 people—including farmers and officers—and caused damage to several vehicles.
In response, the administration suspended work on the project the same day. Subsequent talks on December 12 failed to reach an agreement, and on December 17, the Bharatiya Kisan Union announced it would continue the protest.
