Speaker S Madhusudanachary proceeded with the Question Hour (as per decision of Business Advisory Committee) and BJP members, who were standing, raised slogans.
State Industries Minister K T Rama Rao said the state government is ready for a debate on the issue.
The Speaker appealed to the BJP members to resume their seats.
Deputy Chief Minister Kadiam Srihari also appealed to the BJP members to cooperate in running the House properly as it was decided that adjournment motions would be taken up after the Question Hour.
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Noting that the issue has come to his notice, Chief Minister K Chandrasekhar Rao said it did not look good as BJP members stood up though routine business continued.
He urged the BJP members to return to their seats.
BJP floor leader G Kishan Reddy said he agreed with what the Chief Minister said.
He, however, announced walkout by his party members in protest against the alleged "delay and negligence" on the part of the state government in addressing the issue.
Meanwhile, MIM floor leader Akbaruddin Owaisi took exception to a BJP member allegedly trying to "snatch and pull" mike from another member.