Even as uncertainty continues over the fate of the palatial bungalows constructed on Rushikonda Hill during the previous YSR Congress Party regime in Visakhapatnam, the TDP-led coalition government appears to be considering additional construction on the hill to make the project commercially viable.
At the third meeting of the Cabinet sub-committee formed to examine options for the utilisation of the Rushikonda Palace, held on Wednesday at the Secretariat, members observed that the existing structures are not fully suitable for hotel operations in their current form. The committee discussed the possibility of constructing additional buildings to support a hospitality-driven model.
State Finance Minister Payyavula Kesav, a member of the sub-committee, said that several proposals submitted by leading hospitality players were reviewed. He revealed that reputed groups such as Taj, The Leela, Atmosphere Core, and FEMA have expressed interest in redeveloping and operating the Rushikonda property.
The committee broadly agreed to move forward with a hospitality-centric approach, provided the project meets financial viability, environmental safeguards, and regulatory compliance. International best practices in beachfront development, including models followed in the Maldives and Puducherry, were also discussed as reference points.
Speaking to the media, Kesav stated that the government is inclined to hand over the Rushikonda Palace for hospitality use, while ensuring optimal utilisation of the limited nine acres of land beneath the hill earmarked for hotel development.
He further clarified that the last two blocks of the Rushikonda Palace will be retained for public use, including an art gallery, cultural programmes, and other civic activities.
Tourism Minister Kandula Durgesh said that 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, he stressed that the government is focused only on a sustainable and viable project, with priority given to developing rooms and related facilities to support the hospitality model.
A final decision on the utilisation of the Rushikonda Palace is expected to be taken shortly.
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