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Andhra government taps private players for Rushikonda resort project
After more than two years of indecision, the Andhra Pradesh government has initiated the process of converting the controversial Rushikonda palatial complex in Visakhapatnam into an international-standard hospitality destination through private participation
After more than two years of indecision, the Andhra Pradesh government has initiated the process of converting the controversial Rushikonda palatial complex in Visakhapatnam into an international-standard hospitality destination through private participation.
The Andhra Pradesh Tourism Development Corporation (APTDC) on Friday invited expressions of interest (EOIs) from hospitality operators, hotel chains, resort developers, infrastructure developers and investors for the operation, maintenance and commercial utilisation of the Rushikonda building complex under the public-private partnership (PPP) model.
State tourism minister Kandula Durgesh told reporters that the government had decided to utilise the Rushikonda complex for tourism while ensuring public access to the property.
“The property will be managed in accordance with international standards,” he said.
The move comes days after a cabinet sub-committee headed by finance minister Payyavula Kesav recommended developing the ₹452-crore hilltop complex into a luxury resort while ensuring continued public access to parts of the property.
Durgesh said the palatial complex, built during the previous YSR Congress Party government as the proposed residence-cum-camp office of former chief minister Y S Jagan Mohan Reddy, had remained vacant for the past two years, resulting in annual maintenance expenditure of ₹7 crore.
Under the proposal, the project will be developed in two phases.
In the first phase, the private operator will take over the operation, maintenance and commercial management of the existing Rushikonda building complex spread across 9.8 acres. The complex comprises five G+1 blocks with a built-up area of 13,542.21 square metres and is equipped with landscaped gardens, internal roads, pedestrian pathways, parking facilities and supporting infrastructure.
The APTDC has also proposed expansion on two vacant land parcels within the complex, allowing nearly 4,800 square metres of additional built-up area, subject to statutory approvals. The additional construction has been proposed as the existing accommodation capacity may not be sufficient for a world-class luxury hospitality project.
The second phase involves developing a nine-acre land parcel at the foothills of Rushikonda. Preliminary assessments indicate that around 1.25 acres are suitable for G+1 construction, subject to Coastal Regulation Zone (CRZ) approvals and other statutory clearances.
The APTDC clarified that the EOI exercise is intended only to assess market interest and obtain stakeholder feedback for project structuring. It does not constitute a tender or a commitment to award any contract.
Based on the responses received, the corporation will undertake feasibility studies and stakeholder consultations before issuing a Request for Proposal (RFP) to select a private partner.
According to the notification, interested companies must submit their EOIs by July 10.
Several leading hospitality brands, including Taj, Atmosphere Core, Leela and Fema, have reportedly inspected the property and expressed preliminary interest in operating the proposed luxury resort.
