- Several plants have been shut earlier in other States
- May spread to other States, if compliances are not met
- Effluent Treatment Plants must
The proposed Dune Ethanol Private Limited plant in Hanumangarh district, Rajasthan, has emerged as one of the most contentious rural industrial projects in the state. It has triggered sustained farmer protests that recently escalated into violent clashes with police. According to reports, over 50 people, including women, were injured in the clashes on December 10.
The agitation has acquired a sharp political edge, given that the project was approved during the previous Congress government led by Chief Minister Ashok Gehlot, even as the Congress party is now at the forefront of protests against the same facility.
The Dune Ethanol project, located near Rathi Kheda village in the Tibbi area of Hanumangarh, is a large grain-based ethanol manufacturing unit with co-generation capacity, aligned with the Centre’s Ethanol Blended Petrol (EBP) programme. The company acquired land for the project around 2020 and subsequently received statutory clearances, including environmental approvals, during the Gehlot-led Congress government’s tenure. The project is estimated to cost Rs. 450 crores and the Directors are Robin Jindal and Jatinder Arora. At the time, the project was positioned as part of Rajasthan’s industrial and renewable-energy push, promising investment, employment and alignment with national biofuel targets.
Water Scarcity
However, opposition from local farmers and villagers began to gather momentum from early 2024, with concerns centred on groundwater depletion, environmental pollution and long-term impact on agriculture in an already water-stressed region. Hanumangarh lies in an arid belt where irrigation and drinking water availability remain politically and socially sensitive issues. Protestors argue that ethanol production is highly water-intensive and fear that the plant could consume large volumes of fresh groundwater, undermining farm livelihoods and future water security.
For over a year, the agitation remained largely peaceful, with sit-ins, rallies and repeated memoranda to district authorities. Farmers organised under local platforms such as the ‘Ethanol Factory Hatao Sangharsh Samiti’, while broader farmer unions extended support as the movement grew. The turning point came in mid-2025, when construction activity at the site accelerated, including the erection of boundary walls and deployment of additional security.
Tensions peaked in December 2025 during a Mahapanchayat in Tibbi, when thousands of farmers attempted to march to the factory site. Protesters broke through barricades, entered the premises and damaged property, including administrative buildings and vehicles. The situation spiralled into violence, prompting police action that included tear gas and baton charges. Several people, including policemen and protestors, were injured, and mobile internet services were suspended in parts of the district as a precautionary measure. Section 144 was imposed to prevent further gatherings. The political dimension of the protest sharpened when Congress leaders and MLAs joined the agitation, criticising the BJP-led state government for what they described as police excesses and insensitivity to farmers’ concerns. Several Congress functionaries were detained while attempting to reach protest sites. The BJP government, in response, has pointed out that all major approvals for the ethanol plant were granted under the previous Congress regime, accusing the opposition of political opportunism. Congress leaders, meanwhile, have argued that local opposition and environmental realities warrant a re-examination of the project, regardless of when approvals were issued.
At the core of the farmers’ resistance are three principal concerns. First is water usage, with protestors claiming the plant could consume millions of litres of water daily, aggravating scarcity in the region. Second is the fear of environmental contamination, including discharge and waste management risks that could affect soil fertility and groundwater quality. Third is the perceived threat to agricultural land and livelihoods, with villagers wary of creeping industrialisation in a predominantly agrarian belt.
Company Claims it is Complying with Environmental Norms
Dune Ethanol and district authorities maintain that the project complies with all environmental and regulatory norms and that ethanol production is a national priority to reduce fuel imports and emissions. They also argue that the plant will create local employment and stimulate economic activity. However, farmer groups remain unconvinced and are demanding either cancellation of the project or a fresh environmental assessment with explicit local consent.
With another large Maha Panchayat planned and farmer unions from neighbouring Punjab and Haryana signalling support, the situation remains fluid. The Dune Ethanol controversy has thus become more than a local land dispute, evolving into a test case for how industrial policy, environmental governance and rural consent intersect, and exposing the political contradictions that arise when projects approved by one government become flashpoints under another.
Ethanol Plants Face Shutdowns Across States Over Pollution
Several ethanol and distillery units across India have faced shutdowns, suspensions and regulatory action over the past few years as pollution concerns, particularly untreated effluent discharge and groundwater contamination, trigger protests and intervention by pollution control authorities.
In Uttar Pradesh, the country’s largest producer of molasses-based ethanol, multiple distilleries have been pulled up by the Uttar Pradesh Pollution Control Board (UPPCB) for violating effluent discharge norms. Units in districts such as Pilibhit, Bareilly and Shahjahanpur have faced temporary closures after farmers complained that untreated distillery waste was contaminating agricultural land and water bodies. In several cases, authorities ordered shutdowns until effluent treatment plants (ETPs) were upgraded or made operational, citing high biochemical oxygen demand (BOD) levels in discharged wastewater.
Punjab has also witnessed strong action against ethanol facilities. The high-profile closure of a grain-based ethanol plant in Zira followed sustained farmer protests alleging air and water pollution. The Punjab Pollution Control Board eventually ordered the plant to shut after inspections flagged violations, including improper handling of effluent and emissions. The episode has become a reference point for similar protests in other states.
In Andhra Pradesh, proposed and operational ethanol projects in districts such as East Godavari have drawn objections from local communities and civil society groups, leading to construction halts and demands for stricter environmental scrutiny. Activists have warned that inadequate effluent management could irreversibly damage fertile agricultural belts and water sources.
Experts note that ethanol plants generate high-strength wastewater with heavy organic loads, making them among the most polluting industrial units if not managed properly. While regulations mandate ETPs and, increasingly, Zero Liquid Discharge (ZLD) systems, enforcement remains uneven.
As India pushes aggressively towards its ethanol blending targets, regulators face growing pressure to ensure that capacity expansion does not come at the cost of water security, farmland and public health.
Trilok Desai / R. Chandrakanth
Ambrosia
