The Gujarat government has decided to shut down the state-run ship-building company Alcock Ashdown (Gujarat) Ltd (AAGL), which was incurring losses for several years, an official today said.
A communication in this regard was sent to the Bhavnagar-based company a few days ago, and a board meeting has been called by the management on August 24 to finalise the modalities of winding up, a senior official today said.
"The state government has decided to shut down Alcock Ashdown. It was incurring losses for many years and was virtually defunct. No commercial activity was going on," said B S Mehta, Joint Secretary, state Industries Department.
In the communication sent to the company, which is signed by Mehta, the department said the decision was taken following the state finance department's approval.
"Matters related to the incomplete projects, including of Indian Navy and Andaman and Nicobar Island administration, and matters pertaining to relieving employees, decisions regarding assets and court cases will now be handled by the Gujarat Maritime Board," the communication said.
Bhavnagar Municipal Commissioner M A Gandhi, who is ex-officio managing director of the company, said a board meeting has been called on August 24 by the management.
"The company, with around 60 employees at present, is almost defunct...Regarding the employees, decision will taken as per the Companies Act," Gandhi added.
Alcock Ashdown, originally a British-owned company, was taken over by the Union government in 1975 and subsequently acquired by the Gujarat government in 1994.
The company is mainly into ship-building, ship conversion and ship overhaul projects. It owns two ship-building yards, one on the coast of Bhavnagar and another at Chanch in Amreli district.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)