From Our Correspondent
Visakhapatnam: The Andhra Pradesh government has initiated the process of leasing out the controversial Rushikonda palace complex in Visakhapatnam to a private operator under an Operation and Maintenance (O&M) model, nearly two years after the NDA government assumed office.
The Andhra Pradesh Tourism Development Corporation (APTDC) has issued an Expression of Interest (EOI) inviting hospitality and tourism companies to operate and maintain the sprawling property, which was constructed during the previous YSRCP government at an estimated cost of ₹452 crore.
The palace complex, built atop Rushikonda Hill, had drawn widespread political criticism after it emerged that the then Y.S. Jagan Mohan Reddy government had spent hundreds of crores of public funds on the project.
Five Blocks Across 9.8 Acres
According to the EOI, the lease covers five blocks spread across 9.8 acres, complete with landscaped gardens, internal roads, walkways, parking areas and supporting infrastructure.
APTDC has also offered 1,200 square metres of vacant land, while permitting the successful bidder to construct additional G+1 buildings covering up to 4,800 square metres, subject to applicable regulations.
Interested companies have been asked to submit their proposals by July 10.
Global Hotel Chains Have Shown Interest
Several reputed hospitality brands, including Taj, Atmosphere Core, The Leela and FEMA, have reportedly inspected the property and expressed interest in operating the complex.
However, one of the concerns flagged by prospective operators was the limited number of guest rooms in the existing buildings. To make the project commercially viable, the government has now provided scope for constructing additional accommodation.
Officials noted that while some vacant land is available within the premises, Coastal Regulation Zone (CRZ) norms remain a key constraint on future expansion.
Tourism Department Land Bank
The Andhra Pradesh Tourism Department owns 70.63 acres of land at Rushikonda. Of this, 18.65 acres are currently in use, 47.4 acres remain vacant, while a portion is under encroachment.
The government’s decision to hand over the complex to a private operator is aimed at ensuring the utilisation of the high-value property and reducing the maintenance burden on the state exchequer after the buildings remained unused since their completion.