Rushikonda Palace to Become Luxury Resort Under PPP Model in Visakhapatnam
The controversial Rushikonda Palace in Visakhapatnam will be converted into a luxury resort under a Public-Private Partnership model. The government aims to generate revenue and preserve the facility, while also dedicating a portion to the public as a cultural center.
Highlights
- •The controversial Rushikonda Palace in Visakhapatnam will be converted into a luxury resort under a PPP model rather than being demolished.
- •The cabinet sub-committee cited high maintenance costs and the potential to restore state tourism revenue as key drivers for this decision.
- •Plans include designating one block as a cultural or heritage center to ensure public access and maintain community ties.
- •Major hospitality groups such as Taj, Tata, and Leela have already expressed interest in the upcoming bidding process.
A recent inspection by a state-level cabinet sub-committee has determined that the controversial Rushikonda Palace complex in Visakhapatnam will not be demolished. Instead, officials are proposing to transform the structure into an international-standard luxury resort operated under a Public-Private Partnership (PPP) model. This strategic move aims to utilize the existing infrastructure to generate government revenue while addressing public concerns regarding the project.
Transforming the Rushikonda Palace Complex
The sub-committee, which included Finance Minister Payyavula Keshav, Tourism Minister Kandula Durgesh, and Social Welfare Minister Veeranjaneya Swamy, conducted a thorough field inspection of the property. During their visit, they reviewed the lavish interiors, noting expensive marble features, expansive bathrooms, and high-end sanitary fixtures. Minister Keshav highlighted the fiscal irresponsibility of the previous administration, comparing the scale of the facility's construction to the needs of common citizens.
The ministers emphasized that abandoning the facility or opting for demolition would be inefficient, especially given the ongoing maintenance costs of approximately Rs 25 lakh per month, with an additional Rs 1.5 crore required to preserve the property's premium features. Minister Durgesh noted that the prior closure of Haritha Resorts, which previously contributed Rs 7.5 crore annually to the APTDC, had negatively impacted the state's tourism revenue. Transitioning the Rushikonda Palace into a luxury resort is viewed as a necessary step to restore financial viability and safeguard the asset.
Public Access and Future Development
To balance commercial interests with local sentiment, the committee has proposed that a portion of the complex be designated as a public cultural or heritage center. This initiative intends to maintain community accessibility and honor the emotional connection that Visakhapatnam residents have with the location. Regarding the Rushikonda Palace luxury resort project, officials stated that major hospitality firms—including Taj, Tata, Fema, Leela, and Atmosphere Core—have already expressed interest.
The state government plans to issue an official bid invitation in the near future, requiring interested companies to submit Detailed Project Reports within a short timeframe. All subsequent allocations are expected to follow strict regulatory guidelines to ensure transparency and prevent financial irregularities. The committee will soon submit a final comprehensive report based on their inspections to the state cabinet, which will hold the authority to make the final decision regarding the future operations of the site.
