AP to Lease Rushikonda Luxury Tourism Complex
The Andhra Pradesh government has initiated the process to lease, operate, and maintain the luxury beachfront tourism complex at Rushikonda near Visakhapatnam, a ₹500-crore project built during the previous YSR Congress Party (YSRCP) government. The Andhra Pradesh Tourism Development Corporation (APTDC) has invited Expressions of Interest (EoI) from private entities to operate, maintain, and commercially develop the property.
The decision follows the recommendations of a Group of Ministers (GoM) constituted by Chief Minister N. Chandrababu Naidu to determine the future use of the complex. The proposal was also discussed by the State Cabinet.
The tourism complex was constructed after the demolition of the old APTDC resort overlooking the Bay of Bengal. The present NDA government has alleged that the project was originally intended to serve as the camp office of former Chief Minister Y.S. Jagan Mohan Reddy and was fitted with imported furniture, premium granite, spa facilities, and other luxury amenities. YSRCP leader and former Minister Gudivada Amarnath denied the allegation.
Tourism Minister Kandula Durgesh recently said the government would take a final decision in the larger public interest.
Along with the main property, the government has invited proposals to monetise an adjoining nine-acre land parcel at the foothills of Rushikonda. According to the EoI document, the land will be leased to the successful bidder for the main complex to enable further development and value addition, subject to approvals from the Coastal Regulation Zone (CRZ) authorities.
The complex has a built-up area of approximately 13,542 square metres and includes four main blocks, seven G+1 buildings, luxury suites, banquet halls, waiting lounges, staff quarters, landscaped gardens, and a helipad.
The property has remained largely unutilised for more than two years. Government sources said over ₹25 lakh is being spent every month on its maintenance. Industry sources said the successful operator is likely to invest further in interiors, painting, and limited remodelling before positioning the property as a premium hospitality destination.
The government is exploring the possibility of developing the complex into a super-luxury resort targeting high-end domestic and international tourists, while also promoting Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism and destination weddings.
During stakeholder consultations, several hospitality chains, including The Leela Palace Hotels and Resorts, Taj Hotels, Atmosphere Core, and Fema Hotels, reportedly expressed interest in operating the property.