The Himachal Pradesh government has yet to decide whether to cancel Hindustan Petroleum Corporation Limited’s (HPCL) proposed ethanol plant in Jeetpur Behri, Una district, with the cancellation recommendation pending for more than four months as of 18 October 2026.
The Industries Department’s Una office recommended cancelling the project on 6 June 2026, citing the lack of progress on key requirements. The delay has left the status of the project unresolved, with neither the plant moving towards implementation nor the allotted land being released for another investor.
The project was approved on 19 February 2022. HPCL was allotted 325 kanals of land in the Jeetpur Behri Industrial Area on a 95-year lease at a rate of Rs 1 per square metre. However, the company did not complete the process of taking possession of the land or finalising the lease agreement.
Rail Connectivity and Land Payment Remain Unresolved
The project’s development also involved securing additional private land to establish rail connectivity to the proposed plant. HPCL sought the additional land on 7 March 2023.
On 5 November 2023, a meeting chaired by the Additional Deputy Commissioner of Una was held to negotiate the price with private landowners. Subsequently, on 8 February 2024, the company was asked to deposit Rs 37.8 crore at the earliest. According to the report, the payment was not made.
The outstanding land-related requirements and the lack of progress have contributed to the uncertainty surrounding the project’s future.
Industries Department Issued Four Show-Cause Notices
The Industries Department issued four show-cause notices to the company between July 2022 and April 2026, dated 13 July 2022, 6 September 2022, 6 January 2023 and 2 April 2026.
Departmental records cited in the report indicate that the expected responses and compliance were not received despite the notices. The Una office subsequently forwarded its recommendation to cancel the project to the Industries Commissioner on 6 June 2026.
Anshul Dhiman, Joint Director of Industries, confirmed that the proposal had been sent to the Directorate for approval. He stated that approval to cancel the plant had not yet been received.
Bioenergy Business Analysis
The pending decision highlights the importance of timely project execution and land-allocation processes for India’s ethanol sector. When a proposed facility remains stalled for years, uncertainty over its status can also delay the potential reuse of industrial land for other investments.
For the HPCL project in Una district, the immediate question is whether the government will approve the cancellation or take another course of action. Until a decision is communicated, the future of the 325-kanal site and the proposed ethanol plant remains uncertain.
The case also underscores the need for clear timelines for reviewing stalled industrial projects, particularly those intended to contribute to domestic ethanol production. However, the available report does not establish whether the project’s delay has affected regional ethanol supply targets or HPCL’s wider ethanol procurement strategy.
