The Andhra Pradesh government’s initiative to transform the Rushikonda palatial complex in Visakhapatnam into a high-standard hospitality destination through a public-private partnership has encountered significant challenges. State tourism minister Kandula Durgesh announced on Saturday that no private companies have shown interest in the project, stalling its progress.
Addressing reporters in Rajahmundry, Durgesh said the previous YSRCP regime had built the Rushikonda palace for “personal luxury” rather than commercial viability. “Major hospitality companies are currently not willing to take over the Rushikonda Palace buildings because the large room sizes do not suit standard hotel operations,” he said.
“We shall resolve these challenges and bring the buildings into practical public or tourism use soon. Durgesh said the palatial complex, built as the residence-cum-camp office for former chief minister Y S Jagan Mohan Reddy during his tenure, was lying vacant for two years, and lost the state exchequer an annual sum of ₹ 7 crore for its maintenance. The decision followed a recommendation by a cabinet sub-committee headed by finance minister Payyavula Kesav to develop the ₹ 452-crore hilltop complex into a luxury resort while ensuring continued public access to parts of the property.
The minister, however, said despite the lack of immediate takers from large hospitality chains, the government maintains that the complex would eventually be put to use for the hospitality purposes or utilized to boost tourism.
