AP assembly witnesses noisy scenes over Allwyn's fate

Industries Minister Bashiruddin Babu Khan ruled out the merger of the ailing state-owned Allwyn Auto Limited with the Andhra Pradesh State Road Transport Corporation, saying the government has decided to close down the company.

Making a statement in the state assembly amidst vociferous protests from the Opposition, the minister said the lease with Voltas Ltd will be in force till March 31. However, as the accumulated losses till January 31 stood at Rs 203.5 million, the government felt continuing the company's operations will be impossible. Moreover, even the capacity utilisation has been far lower than what has been projected in the Industrial Development Bank of India revival proposal.

The minister's reply was almost lost in the din as members from the Congress, the Communist Party of India-Marxist, the CPI and the Bhartiya Janata Party rushed to the speaker's podium thumping the table. They contended the state government had turned a deaf ear to the Allwyn workers's plea.

Demanding a Rs 100 million working capital, the workers have submitted three options -- they are also willing to share the company's future losses by foregoing their provident fund.

For almost 90 minutes, the House witnessed a determined effort by the Opposition to extract an assurance from the government as the future of more than 800 workers and their families was at stake.

Later, the House was adjourned sine die after the minister completed his reply amidst pandemonium.

UNI