Govt plans PPP model to develop Rushikonda complex

The Andhra Pradesh government has received several proposals to monetise the sea-facing complex at Rushikonda and the adjoining nine-acre vacant land. Many proposals suggest developing the site into a major tourism destination under the Public-Private Partnership (PPP) model on a revenue-sharing basis.

A recent review by the Andhra Pradesh Tourism Authority (APTA) and the Andhra Pradesh Tourism Development Corporation (APTDC) recommended inviting reputed national and international hotel chains to run the property on long-term, transparent lease agreements. Officials said the move would generate steady revenue for the state and create employment opportunities.

Built during the previous YSRCP regime at an estimated cost of Rs 500 crore, the Rushikonda complex has remained unused for several months. The government reportedly spends about ₹25 lakh every month on maintenance.

Spread over 13,542 square metres, the complex includes four blocks and seven G+1 buildings with luxury suites, banquet halls, restaurants, a spa, gym, conference halls, lounges, and staff quarters.

Andhra Pradesh Star Hotels’ Association (ASHA) president R.V. Swamy said the PPP model offered one of the most viable options for the government. ASHA has also proposed establishing an international consulate complex to host the consulates of the UAE, the USA, and Singapore to serve NRIs and promote business travel.

Another proposal suggests converting the site into an integrated tourism hub with a beach resort and convention centre to promote MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism. The complex could also feature cultural attractions such as Dhimsa dance, traditional cuisine, and Araku Valley coffee.

The Andhra Pradesh Tourism Forum (APTF) has supported setting up consulates along with offices for the AP Tourism Department and the AP Economic Development Board to enhance the state’s global presence.