Once the paperwork for moving the project to Madhya Pradesh are finished, the Rs 450-crore ethanol facility being developed by a private business in Rajasthan's Hanumangarh district is expected to conclude operations in the state.
Weeks after farmers staged violent protests out of concern that the plant would reduce soil fertility and increase pollution, work on the project was put on hold.
The project, which was approved in 2023 by the Congress government led by Ashok Gehlot, encountered difficulties in December 2025 due to claims that industrial trash and effluents would probably damage groundwater and agriculture.
"Given the circumstances, continuing work here is not feasible," a firm official stated. We shall adhere to all relocation-related processes.
Dune Ethanol Private Limited, located in Chandigarh, is developing the facility near the Rathi Khera village of Hanumangarh.
It was planned to manufacture 1,320 KLPD of grain-based ethanol on 40 acres (16.19 hectares) and contain a 40 MW cogeneration power plant. The business intended to employ locally supplied straw, rice, and maize.TNN.
