Protests Over Environmental Concerns Push Dune Ethanol to Relocate Project to Madhya Pradesh
JAIPUR (India CSR): Rs. 450-crore grain-based ethanol project proposed in Rajasthan’s Hanumangarh district is likely to wind up operations in the state, following sustained protests by local farmers and growing concerns over environmental impact. The project is expected to be relocated to Madhya Pradesh once procedural formalities are completed.
The ethanol plant, cleared in 2023 under the Ashok Gehlot-led Congress government, faced resistance within weeks of construction activity. Farmers raised strong objections, alleging that the plant would harm soil fertility, contaminate groundwater, and increase pollution in the agrarian region.
Farmers Raise Environmental and Agricultural Concerns
Protests intensified in December 2025 after allegations surfaced that effluents and industrial waste from the proposed plant could negatively impact farmland and water resources. The agitation turned violent at some places, prompting authorities to halt work on the project.
Local farming communities expressed fears that large-scale industrial activity would disturb the ecological balance of the area, which is heavily dependent on agriculture for livelihoods.
Company Confirms Relocation Plans
Confirming the development, a representative of the company said that continuing operations in Rajasthan was no longer viable.
“Given the circumstances, continuing work here is not feasible. We will comply with all procedures required for relocation,” the company representative stated.
Project Details: Investment, Capacity and Location
The ethanol project is being developed by Chandigarh-based Dune Ethanol Private Limited at Rathi Khera village in Hanumangarh district.
Key features of the proposed project include:
- Total investment: ₹450 crore
- Land area: 40 acres (16.19 hectares)
- Production capacity: 1,320 KLPD of grain-based ethanol
- Power generation: 40 MW co-generation power plant
- Raw materials: Rice, maize, and agricultural straw sourced locally
The project was part of India’s broader push to enhance ethanol blending and reduce dependence on fossil fuels.
Setback to Ethanol Expansion in Rajasthan
The possible exit of the ethanol plant marks a setback for Rajasthan’s industrial and renewable energy ambitions. While ethanol projects are promoted as part of India’s clean energy transition, the incident highlights the importance of balancing industrial development with environmental sustainability and community consent.
Industry experts note that social acceptance and transparent environmental safeguards are critical for the success of large-scale biofuel projects, especially in agriculture-dominated regions.
