The proposed Rs. 450-crore grain-based ethanol facility in Rajasthan’s Hanumangarh district is probably going to cease operations due to persistent farmer protests and mounting environmental concerns. After all formalities are finished, the project is anticipated to be moved to Madhya Pradesh.

After being approved in 2023 by the Congress administration led by Ashok Gehlot, the ethanol project encountered opposition just a few weeks into construction. Farmers objected strongly, claiming that the plant would increase pollution in the rural area, damage soil fertility, and poison groundwater. After claims that the projected plant’s effluents and industrial waste could harm farms and water supplies, protests grew more intense in December 2025. Authorities stopped the project’s construction after the agitation in some areas descended into violence.

Local rural communities, which rely mostly on agriculture for their livelihoods, voiced concerns that extensive industrial activity might upset the ecological balance of the region. A corporate official confirmed the development, stating that it was no longer feasible to continue operations in Rajasthan.