Batala's machine tool industry on revival path

The turnaround is happening in all areas of machine tool manufacturing except foundry.

The town of Batala in Punjab was once famous for machine tool manufacturing. Then came the slump. Now, the downturn seems to have receded, except for the foundry units.

A majority of the small and medium -sized industries have started receiving orders from the multi-national companies, which value the quality of tools produced here.

Batala had the distinction of being one of the biggest centres for cast iron and machine tool manufacturing. The machinery produced here used to be of high quality. There was a time when about 788 cast iron and 1,344 machine tool manufacturing units functioned in the town.

Although, only 20 per cent of them are operational today, but they are in a better financial shape than the last year. Foundry units, however, have not shown signs of revival.

Among the famous units which closed down in the past were Agriculture Industries, Khalsa Engineering, Royal, Micro and Janaki Steel Rolling Mills.

Industry-experts say that the apathy of the governments, both at the state and the central government, and militancy were the reasons behind the decline of this industry.

They add that nearly a decade ago, the area was almost inaccessible to traders and customers from others parts of India due to militancy which was at its height then. The overall development in general and industrial development in particular came to a grinding halt during that period.

Industrialists and traders were then forced to invest their surplus money to other parts of the country with the result that Ludhiana, Faridabad and Agra and even far off places such as Secunderabad flourished at the cost of Batala.

Speaking to Business Standard, Ramesh Shukla president, Council of Industrial Association, said, " The abolition of freight equalisation policy proved to be the last nail in the coffin of Batala's industry. The abolition of this policy by the central government put the industrialists of this region at a financial-disadvantage vis-à-vis their counterparts in the other parts of the country."

But after facing such hard times, the present boom in manufacturing sector, ( due to MNC's setting up base in India), is providing with orders to execute.

The industries are hoping that the place would attract more industries in machine tool manufacturing sector, considering that the region seems to be on a revival path.

He added that the dying units expect the state government to grant them a special package so that their locational and geographical disadvantages can be neutralised and they can compete with their counterparts in the country.

The Minister of State for Industries Ashwani Kumar had advocated the dyeing units needed to be equipped with better technology. Nothing concrete has happened. Even the Prime Minister had announced a package for the foundry units but the details are yet to take shape.

The industry association has demanded that as most of the units in the town fall in the small scale industries (SSI) sector, interest on the loans taken by the units should not exceed 7 per cent per annum.