After more than two years of hesitation, the Andhra Pradesh government has begun the process of transforming the controversial Rushikonda luxury complex in Visakhapatnam into an international standard hospitality destination through private sector participation.
The Andhra Pradesh Tourism Development Corporation (APTDC) on Friday invited expressions of interest (EOIs) from hospitality operators, hotel chains, resort developers, infrastructure developers and investors for the operation, maintenance and commercial use of the Rushikonda building complex under the public-private partnership (PPP) model.
State Tourism Minister Kandola Durgesh told reporters that the government has decided to use the Rushikonda complex for tourism while ensuring public access to the property.
“The property will be managed in accordance with international standards,” he added.
This move comes days after a Cabinet subcommittee headed by Finance Minister Payavola Kesav recommended developing the programme $A Rs 452-crore hilltop complex is being transformed into a luxury resort while ensuring continued public access to parts of the property.
The palatial complex, which was built during the previous YSR Congress government as the proposed residence and camp of former chief minister YS Jagan Mohan Reddy, has remained vacant for the past two years, resulting in an annual maintenance expenditure of Rs. $7 Crores.
Under this proposal, the project will be developed in two phases.
In the first phase, the private operator will take over the operation, maintenance and commercial management of the existing Rushikunda building complex spread over 9.8 acres. The complex consists of five G+1 buildings with a built-up area of 13,542.21 square metres, and is equipped with landscaped gardens, internal roads, pedestrian walkways, parking lots and supporting infrastructure.
APTDC has also proposed an expansion on two vacant plots of land within the complex, allowing approximately 4,800 square meters of additional built-up area, subject to legal approvals. The additional construction was proposed because the current accommodation capacity may not be sufficient for a world-class luxury hospitality project.
The second phase involves developing a nine-acre plot of land at the foothills of Rushikunda. Preliminary assessments indicate that approximately 1.25 acres are suitable for G+1 construction, subject to Coastal Regulation Zone (CRZ) approvals and other legal permits.
APTDC clarified that the EOI exercise is only to assess market interest and obtain stakeholder feedback on project structuring. It does not constitute a tender or a commitment to award any contract.
Based on the responses received, the company will conduct feasibility studies and stakeholder consultations before issuing a Request for Proposal (RFP) to select a private sector partner.
According to the notification, interested companies must submit their expression of interest by July 10.
Several leading hospitality brands, including Taj, Atmosphere Core, Leela and Fema, have reportedly examined the property and expressed initial interest in operating the proposed luxury resort.
