Reputed groups from hospitality industry including Taj Group, The Leela Group and HII Hotels have expressed interest in redeveloping and operating the palatial bungalows on the beach-front Rushikonda Hills in Visakhapatnam built during the previous YSR Congress party regime in Andhra Pradesh, state finance minister Payyavula Kesav said on Wednesday.
These hospitality groups have submitted detailed proposals to redevelop the Rushikonda buildings into premium tourism and hospitality destinations, including luxury beach villas, cultural spaces and museums.
Speaking to reporters after the third meeting of the cabinet sub-committee constituted to examine options for the utilisation of the Rushikonda palace, the minister said it was noted that the existing palace structures are not fully suitable for hotel operations in their present form.
“There were suggestions to consider constructing additional buildings to make the project commercially viable. We shall hold another round of discussions on December 28 and the final proposals will be placed before the state cabinet for approval,” he said.
The sub-committee has broadly agreed to move ahead with a hospitality-driven model, provided it is financially viable and compliant with environmental and regulatory norms. “International best practices in beachfront development, such as those followed in the Maldives and Puducherry, were also discussed as reference models,” Kesav said.
He said the state government was inclined to hand over the Rushikonda Palace for hospitality use. “But some stakeholders have asked for an additional nine acres of land beneath the hill for hotel development. As per Coastal Regulation Zone (CRZ) norms, construction is prohibited on seven of those nine acres, leaving only two acres available for potential use,” he said.
{{/usCountry}}He said the state government was inclined to hand over the Rushikonda Palace for hospitality use. “But some stakeholders have asked for an additional nine acres of land beneath the hill for hotel development. As per Coastal Regulation Zone (CRZ) norms, construction is prohibited on seven of those nine acres, leaving only two acres available for potential use,” he said.
{{/usCountry}}After examining CRZ regulations, the committee found that construction of up to 60,000 square feet is feasible on the hilltop. “While multiple organisations have shown interest, the government is focusing only on a viable and sustainable project. The preference, he said, is to develop rooms and related facilities to support a hospitality-led model,” he said.
He said the last two blocks of the Rushikonda Palace would be retained for public use, including an art gallery, cultural programmes and other civic activities.
The government received an overwhelming response after inviting suggestions on the utilisation of the Rushikonda buildings, with 1,517 proposals submitted. Of these, around 250 contained concrete ideas on redevelopment and usage, while the remaining 1,267 responses were limited to emails without specific suggestions.