JAIPUR: A Rs 450-crore ethanol plant proposed in Rajasthan’s Hanumangarh district is set to exit the state, with the developer planning to relocate the project to Madhya Pradesh once procedural formalities are completed.
The project, promoted by a private company, was stalled weeks after farmers staged protests, citing concerns over soil degradation and increased pollution. Approved by the Ashok Gehlot-led Congress government in 2023, the plant ran into controversy in December 2025 following allegations that industrial effluents and waste could contaminate agricultural land and groundwater.
A company spokesperson said that continuing with the project in Rajasthan was no longer viable under the prevailing circumstances and confirmed that the firm would complete all required procedures for relocation.
The plant was being developed by Chandigarh-based Dune Ethanol Private Limited at Rathi Khera village in Hanumangarh. Spread across 40 acres (16.19 hectares), it was designed to produce 1,320 kilolitres per day of grain-based ethanol and include a 40 MW co-generation power plant. The company had planned to source rice, maize and straw locally for production.
