From Our Correspondent
Amaravati: The Andhra Pradesh government has moved a step closer to leasing out the operation and maintenance of 22 Haritha Hotels and Resorts by approving the bid process and constituting a high-level committee to evaluate proposals.
The Tourism Department had earlier cleared the decks for private participation by permitting the Andhra Pradesh Tourism Development Corporation (APTDC) to float a Request for Proposal (RFP) for the long-term maintenance of the properties. The lease model spans 33 years, with operators required to pay either a percentage of Annual Gross Revenue (AGR) above the 12% IBM value or a Minimum Assured Annual Lease Rent (MAALR) — whichever is higher, according to the government order issued on August 7, 2025.
The RFP covers hotels and resorts grouped into six clusters across the state, including major tourism locations such as Visakhapatnam, Suryalanka, Bhavani Island, Gandikota, Srisailam and others — together accounting for 222 rooms.
The government argues that private operation will improve service quality, enhance tourist footfall, strengthen financial sustainability, and align the sector with the AP Tourism Policy 2024–29, which identifies tourism as a key driver of employment and economic growth.
According to the order, selected agencies will be responsible for upgrading, operating, and maintaining the facilities while meeting statutory norms and submitting quarterly performance reports. The model, the government notes, ensures risk-sharing and accountability, while unlocking value from state-owned tourism assets.
Tender Evaluation Committee Formed
In the latest development, the state government has constituted a Tender Evaluation Committee to oversee scrutiny of technical and financial bids for all six clusters, as per the order issued on December 13, 2025.
The committee will be chaired by the Vice Chairman & Managing Director, APTDC, with the CEO of the Andhra Pradesh Tourism Authority serving as Co-Chairman. Senior officials from APTDC, INCAP, the Finance Department, and hospitality experts will evaluate the bids, ensure compliance with RFP conditions, and recommend the most suitable operators for each cluster. Additional technical and estate officers will participate as invitees.
Next Steps
The APTDC has been authorised to make minor modifications to the RFP based on stakeholder feedback from pre-bid meetings. Once the evaluation is completed, selected operators will be onboarded to run the properties.
The government believes the move will improve hospitality standards, attract reputed brands, and unlock the tourism potential of several key destinations while guaranteeing steady revenue to the state.