Key Points
The proposed ethanol plant near Tibbi in Hanumangarh district will be moved out of Rajasthan after sustained farmer protests over environmental and livelihood concerns.
The agitation saw mahapanchayats, demolition of the plant’s boundary wall, police clashes, internet shutdowns, and multiple FIRs, before the company confirmed its decision to withdraw.
Protest leaders have called the move a major victory but say the agitation will continue until all cases registered against farmers are withdrawn and accountability is fixed.
A proposed ethanol plant near Tibbi in Hanumangarh district of Rajasthan will no longer be set up following massive farmers protests against its construction. A factory, planned by Dune Ethanol Pvt. Ltd., confirmed that the firm has opted to relocate the plant. Farmer leaders termed the move a major victory for the agitation that has continued for over a year.
The decision came after renewed demonstrations by farmers and residents of the Rathi Kheda region on 17 December 2025, which were supported by national farmers unions and local politicians.
A Kisan Sabha leader described the decision as the result of a historic farmers’ struggle. He, however, said the movement would continue until cases registered against protesting farmers are withdrawn. Farmers had been demonstrating since mid December against the ethanol plant proposed in the Rathi Kheda area of Tibbi tehsil, alleging risks to groundwater and agriculture. The agitation against the plant stretches back to September 2024, when the BJP government approved the project, and intensified in June 2025, when construction first began.
After demonstrations and negotiations in late November 2025, protests intensified on December 10, when hundreds of farmers gathered after a mahapanchayat and demolished the boundary wall of the under construction plant using tractors. The incident led to clashes with the police, vandalism of vehicles, use of tear gas, and a lathi charge. Following the violence, police registered FIRs against hundreds of protesters, and several arrests were made, including of political leaders and farmer representatives.
In the days that followed, tension gripped the district. Internet services were suspended, prohibitory orders were imposed, and more than 500 police personnel were deployed to maintain law and order. Farmers organised additional mahapanchayats and warned of intensified protests if the project was not cancelled.
Officials of the company, Dune Ethanol Pvt. Ltd., confirmed that they were considering withdrawing from the project. A senior source said the firm had acquired over 73 bighas of land and planned to invest around ₹450 crore, but the continuing unrest raised concerns about the viability of future operations. Company officials also alleged administrative lapses, claiming that the district collector did not engage with protesters despite repeated requests.
Farmer leaders welcomed the possibility of the project being scrapped, reiterating demands for the withdrawal of all cases against protesters. Two Rajasthan cabinet ministers had visited the site after the December 10 violence, but talks failed to resolve the standoff.
The ethanol plant had been proposed under India’s ethanol blended fuel policy and was projected as one of the largest in Asia, with a capacity of 1,320 kilo litres per day and a requirement of 6,000 kilo litres of fresh water daily. Dune Ethanol maintained that the facility would operate as a zero liquid discharge unit, recycling all wastewater and releasing no effluents into soil or surface water. Officials also claimed that emissions would be strictly monitored and that the plant would generate thousands of jobs while purchasing large quantities of maize and rice from local farmers.
The state Forest and Environment Department had earlier constituted a committee to examine the environmental impact of the plant. The panel, headed by the Bikaner Divisional Commissioner, included officials from the Pollution Control Board and the Groundwater Department, and was tasked with assessing possible groundwater contamination and pollution risks.
Farmers, however, consistently rejected these assurances. They argued that the plant would lower groundwater levels in one of Rajasthan’s most fertile agricultural regions and cause air and water pollution, affecting crops, health, and livelihoods. Many pointed to the scale of water extraction and long term ecological risks as unacceptable.
With the company now deciding to move the ethanol plant out of Rajasthan, farmers view the outcome as a clear vindication of their concerns. Even so, they have said vigilance will continue until legal cases are withdrawn and assurances are given that similar projects will not be imposed without local consent.
(DS)
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