Archive · 26 Dec 2025
Rajasthan's Ethanol Plant Project Scrapped Amid Political Turmoil
A big company wanted to build a factory in Rajasthan to make ethanol, which is a cleaner fuel.
The government at the time, led by the Congress party, approved the project.
However, after the Congress lost the election, they started protests against the same project they once supported.
Farmers joined the protests, worried about water shortages and pollution.
The protests turned violent, and the company decided to leave Rajasthan.
This means the factory won't be built, and the area will miss out on jobs and economic growth.
Experts say the problems could have been fixed, but politics got in the way.
A ₹450 crore ethanol plant project in Hanumangarh, Rajasthan, was scrapped due to political turmoil and farmer protests.
The project was approved by the Congress government in 2022 but faced opposition after the BJP came to power in 2023.
Protests turned violent, with vehicles set on fire and clashes with the police, leading to an FIR against 100 people, including Congress leaders.
Farmers protested citing water scarcity and pollution concerns, while experts argued that the issues could be resolved with proper implementation of regulations.
The company has decided to relocate the factory, dealing a blow to Rajasthan's economic growth and potential job creation.
- Who
- Dune Ethanol Private Limited, Congress party, BJP government, local farmers
- What
- Scrapping of a ₹450 crore ethanol plant project in Hanumangarh, Rajasthan
- When
- Project approved in 2022, protests began in August 2024, violent mahapanchayat on December 10, 2025
- Where
- Rathikheda village, Tibbi area, Hanumangarh district, Rajasthan
- Why
- Political manoeuvring by the Congress party, protests by farmers citing water scarcity and pollution concerns
- Project Cost
- ₹450 crore
- Location
- Rathikheda village, Hanumangarh, Rajasthan
- Company
- Dune Ethanol Private Limited
- Capacity
- 1,320 kiloliters per day (KLPD)
- Power Plant Capacity
- 24.5 MW
- Protest Date
- November 19, 2025
- Violent Mahapanchayat
- December 10, 2025
- FIR Filed Against
- 100 people, including Congress MLA, MP, and former CPI MLA