Rajasthan: Construction of plant billed ‘Asia’s largest ethanol project’ halted in Hanumangarh after violent protests

The halting of Dune Ethanol's proposed 'Asia's largest ethanol project' in Rathikheda, Hanumangarh district, Rajasthan, due to violent farmer protests since August 2024, presents a microcosm of the complex challenges India faces in balancing industrial development with environmental sustainability and local community welfare. This incident is not merely a local dispute but reflects broader national aspirations and inherent conflicts.

**Background Context: India's Biofuel Push**

India has been aggressively pushing for ethanol blending in petrol, primarily driven by the **Ethanol Blended Petrol (EBP) Programme**. The primary objectives are multi-fold: enhancing energy security by reducing dependence on crude oil imports, mitigating air pollution, and providing an additional income stream for farmers by diversifying crop usage (sugarcane, maize, damaged food grains). The **National Policy on Biofuels 2018** set ambitious targets, initially aiming for E10 (10% ethanol blending) and later advancing the E20 (20% ethanol blending) target from 2030 to 2025. To achieve these targets, a significant increase in ethanol production capacity is imperative, leading to the establishment of large-scale projects like the one proposed by Dune Ethanol. Such projects are often incentivized by government policies, including financial assistance and assured procurement.

**What Happened in Hanumangarh?**

The construction of what was touted as 'Asia's largest ethanol project' by Dune Ethanol in Rathikheda, Hanumangarh, faced severe opposition from local farmers. The protests, which commenced in August 2024, escalated to violence, ultimately leading to the complete halt of construction activities. Farmers' grievances largely revolve around environmental concerns, particularly the significant water requirement of an ethanol plant in an already arid region like Hanumangarh. There are also concerns about potential air and water pollution, impact on soil fertility, and possible displacement or disruption to agricultural livelihoods. A critical aspect highlighted by the farmers is their allegation that their voices and concerns were not adequately heard or addressed during the project planning and clearance stages.

**Key Stakeholders Involved**

1. **Dune Ethanol**: The private company investing in and developing the ethanol plant. Their motivation is to capitalize on the government's biofuel policy and meet the growing demand for ethanol, aiming for profitability and market share.

2. **Local Farmers and Residents of Rathikheda**: The primary agitating group. Their concerns are existential: safeguarding their environment, water resources, agricultural land, and overall quality of life. They represent the local communities directly impacted by industrial development.

3. **Rajasthan State Government**: Plays a crucial role in granting clearances, ensuring law and order, mediating disputes, and balancing industrial growth with environmental protection. It is responsible for attracting investment while also protecting its citizens' interests.

4. **Central Government (Ministry of Petroleum & Natural Gas, Ministry of Environment, Forest & Climate Change)**: Formulates national biofuel policies, sets blending targets, provides financial incentives, and establishes environmental regulatory frameworks. This incident directly impacts the central government's energy security and environmental goals.

5. **Environmental Activists and NGOs**: Often get involved in such cases to amplify local concerns, provide legal and technical support, and advocate for stricter environmental compliance and sustainable development practices.

**Significance for India**

This incident carries profound implications for India. Firstly, it poses a potential setback to the nation's ambitious E20 blending target by 2025, which is crucial for reducing crude oil import bills and enhancing energy security. Secondly, it underscores the inherent tension between industrial development and environmental protection, especially in resource-stressed regions. Ethanol production, while beneficial for agricultural diversification, is water-intensive, raising critical questions about water allocation in arid zones. Thirdly, it highlights critical gaps in governance, particularly concerning the efficacy of **Environmental Impact Assessments (EIAs)** and the **public hearing process** mandated under the **Environment (Protection) Act, 1986** and the **EIA Notification, 2006**. The farmers' allegation of not being heard indicates a potential failure in meaningful public participation, which is vital for securing local consent and preventing conflict. This directly relates to the spirit of **Article 21 (Right to Life and Personal Liberty)**, which has been interpreted by the Supreme Court to include the right to a healthy environment. Furthermore, it touches upon **Article 48A (Protection and Improvement of Environment)** as a Directive Principle of State Policy and **Article 51A(g)** as a Fundamental Duty to protect the natural environment. Such prolonged conflicts can also deter future investments, impacting India's overall industrial growth trajectory.

**Historical Context and Future Implications**

India has a history of development projects facing local resistance due to environmental and social concerns, from large dams (e.g., Narmada Bachao Andolan) to industrial plants (e.g., POSCO project in Odisha). The Hanumangarh incident is a reminder that top-down development models, without adequate local consultation and benefit-sharing, are prone to failure. Looking ahead, this event necessitates a critical re-evaluation of India's project clearance mechanisms. There is a pressing need for more robust, transparent, and inclusive EIA processes that genuinely factor in local ecological sensitivities and community concerns. Future implications include potential delays in achieving biofuel targets, increased scrutiny on new industrial projects, and a renewed focus on sustainable water management practices for water-intensive industries. It also emphasizes the importance of corporate social responsibility and proactive engagement with local communities to build trust and ensure equitable development that benefits all stakeholders, not just industrial players.