Shimla: Himachal Pradesh has decided not to approve any new ethanol plants in the state, citing concerns over high water consumption and the potential risk of environmental pollution. The state government said the decision is part of its broader strategy to promote sustainable industries and protect the state’s limited water and power resources.
Industries Minister Harshwardhan Chauhan announced the decision in the Himachal Pradesh Assembly while responding to a Calling Attention Motion moved by Nalagarh MLA Hardeep Singh Bawa on air and water pollution. Chauhan said ethanol manufacturing units can consume between 5 lakh and 10 lakh litres of water per day, making them unsuitable for a state where water resources are already facing increasing pressure.
The minister also highlighted the potential environmental risks associated with ethanol plants, including pollution of air, surface water and groundwater. He said the government would not approve industries in the future that consume excessive quantities of water or electricity or have the potential to cause significant pollution.
Existing Ethanol Plant in Nalagarh Under Government Review
The policy decision comes amid complaints from residents living near an existing ethanol plant in Nalagarh. Local residents have reportedly raised concerns over foul odour and pollution linked to the facility. The issue was raised in the state Assembly by MLA Hardeep Singh Bawa, who highlighted the difficulties faced by people living in the surrounding areas. 
The state government said an immediate closure of the existing ethanol plant would not be practical. Instead, it is considering a long-term solution, including identifying a suitable alternative location and relocating the facility. The government is expected to examine the plant’s environmental impact and address concerns raised by local residents.
Himachal Pradesh Plans Restrictions on Water- and Power-Intensive Industries
The state government is also considering restrictions on other industries that place heavy demands on water and electricity or generate hazardous waste. Chauhan referred to steel reinforcement bar manufacturing units established under the Centre’s industrial package, noting that some of these plants consume between 50 MW and 100 MW of electricity each.
According to the minister, Himachal Pradesh does not have sufficient power capacity to support a large number of highly energy-intensive industries. The government therefore intends to adopt a more selective approach towards industrial development and avoid projects that could put excessive pressure on the state’s infrastructure and natural resources.
The new approach reflects Himachal Pradesh’s broader industrial policy, which aims to encourage green industries, food processing and employment-intensive manufacturing while discouraging businesses with high water and electricity requirements or a significant pollution footprint.
The decision to reject new ethanol plants marks a significant policy shift for Himachal Pradesh, as the state seeks to balance industrial growth with environmental protection and the sustainable use of its water and energy resources.
