Some of the prominent industries which have closed down include BICO Engg. Works, Kumar Engg. Works, Khalsa Foundry, Royal Foundry, Neelam Foundry, GD Iron Works. The list is unending. Industry sources say that in 1990 there were 1,700 industrial units in Batala. Now, there are not more than 300, out of which only 30 are functioning.

Batala made headlines during the peak of militancy in the state in 1986. Known as the `Great Siege of Batala', the Army and paramilitary forces surrounded the town for seven days in search of terrorists."For 18 years industry was doomed. The first 10 years, till 1991, were lost in fear of militancy, after that in 1992 the equal freight scheme was withdrawn. Now any upgradation or development is unthinkable, " says J C Shukla, president, Factories Association of Batala.

With the introduction of actual freight, the cost of raw material procured by the Batala foundries exceeds that of the finished product produced by units located in the vicinity of steel plants.

Local industry, too, is facing stiff competition from cheap Korean and Chinese machine imports. Batala hitherto enjoyed monopoly over manufacture of agricultural implements and machinery, i.e., chaff-cutters, lathe machines, shapers etc. "The decision to allow import of second-hand machinery is a last death blow to the sick Batala industry," says Ashwani Sekhri, president, Foundries Association.

It is not just foundries. The malaise has spread across the board. Another industry facing the guillotine is sports goods. Batala sports industrialists blame their problems on provincialisation which has created inter-state barriers.

The sports industry is also suffering on the export front. Interestingly, the export orders are being lapped up by Pakistan's sports industry, their products being better in quality and cheaper. "Allow us cane from Andamans and willow from Kashmir, we will do better than Pakistan in exports", says Arun Agarwal, managing director, Deluxe Sports Company Batala, once the hub of the cricket bat industry with export orders pouring in from Europe and Africa, has lost out to rising costs. The quality of the products, too, has deteriorated. Raw material once procured through indigenous sources is now being imported from Singapore.

Even the so-called bright spot of Batala, its cooperative sugar mill, is not without pitfalls. Farmers have been complaining of delayed payments and frequent shut-downs."In the private sugar mills, on-the-spot payment, is made but here we are harassed" says a farmer.

The managing director of the sugar mill, H S Sarangal listed out problems being faced by the mill."We lack capacity to hold sugar stocks in our godowns and till the time the government issues a release order, sugar can`t be disposed of". Mr Sarangal says that money to be paid to farmers was being raised by pledging sugar stocks and payments were being made within 14 days.The Batala sugar mill uses obsolete technology-Holland steam engines-which frequently break-down.

"The plant has outlived its life and needs technological upgradation" says Mr Sarangal. "Modernisation will enhance TCD (tonne crushing per day) capacity to 5,000 quintals. At present, it is 1,500 quintals" Even as Batala is on death throes, the Institute of Machine Tools Technology (IMTT), set up at a cost of Rs 20 crore to cater to Batala foundries, chooses to go on living. The Punjab government watches in fond hope that the UNDP might pitch in with requisite funds to keep the institute afloat, minus the business. IMTT is a joint venture between the Punjab government and UNDP to assist small-scale industries to upgrade their technological base and quality of their product.

A visit to the institute, however, exposes the charade with questions being raised about its viability. With no work to do and a staff strength of 40, the institute is a burden on cash-starved Punjab.

"We call it a Rs 120 silicon testing lab, nothing more, it is not worth more to us" says Rakesh Goel, president, Association of Small Scale Industries of Batala. Mr Sarangal admitted that the institute was in a bad shape. Since investments have been made, closing down is not a sensible option, he says.