Rushikonda Palace To Be Luxury Resort Under PPP Mode

Visakhapatnam: Instead of demolishing the controversial Rushikonda building complex here, it could well be converted into an international-standard luxury resort under Public-Private Partnership mode -- a cabinet sub-committee has concluded after a field inspection.

At the same time, public access can be ensured to certain parts of the property, the panel felt.

This approach, it said, would allow the government to generate revenue while respecting local residents' sentiments. One block is proposed to be turned into a cultural or heritage centre.

The sub-committee, comprising finance minister Payyavula Keshav, tourism minister Kandula Durgesh and social welfare minister Veeranjaneya Swamy, inspected every block and room of the palace.

Tourism special chief secretary Ajay Jain, district collector Abishikth Kishore and senior officials joined them.

The team examined the lavish interiors, including marble designs costing Rs 6,450 per sq-ft, bathrooms measuring 450 sq-ft, and commodes valued at Rs 4–5 lakh each.

Minister Keshav criticised the extravagance, noting that while the previous government promised ordinary citizens 270-square-foot houses, it built bathrooms larger than two families’ homes.

Durgesh pointed out that the demolition of Haritha Resorts, which earlier generated Rs 7.5 crore annually for the APTDC, had severely hurt the tourism department’s finances. He argued that entrusting the new structure to a capable hospitality entity under PPP mode would restore revenue streams and possibly help safeguard the property.

Minister Swamy said the previous government had deceived the public by labelling the project a “Redevelopment Resort” while secretly constructing a palace. “The present government would not misuse funds and would ensure that the facility remains accessible to the common people and nature enthusiasts.”

During a review meeting in Vizag, the ministers said they had gathered public opinion and consulted reputable organisations. Suggestions ranged from converting the facility into a museum, a cultural heritage centre, or a mental health hospital to calls for its demolition. However, given the high maintenance costs, Rs 25 lakh a month for basic upkeep and Rs 1.5 crore to preserve its lavish features, the group of ministers concluded that operating it as a resort is the most viable option.

Major hospitality players such as Taj, Tata, Fema, Leela, and Atmosphere Core have expressed their interest and sought inclusion of adjacent land for integrated development. “We will issue an official bid invitation soon, and companies will need to submit Detailed Project Reports within 10 to 15 days,” he said.

The final decision, however, rests with the cabinet.

“To honour the emotional bond that Visakhapatnam residents share with Rushikonda, we propose designating one block of the complex as a cultural or heritage centre open to public visits,” the ministers said.

“All allocations will follow regulations, with strict monitoring of payments to prevent irregularities. A comprehensive report based on the inspection and review will be submitted to the state government shortly, marking a decisive step in determining the future of the Rushikonda Palace, the ministers said.