Rushikonda complex likely to be developed as luxury resort under PPP model
Andhra Pradesh Finance Minister Payyavula Keshav said a ministerial sub-committee has outlined a plan for the controversial Rushikonda building complex.
Speaking to the media after inspecting the complex, Finance Minister Payyavula Keshav said the complex was constructed during the previous government at an estimated cost of approximately ₹450 crore.
It is likely to be developed as an international-standard luxury resort under a Public-Private Partnership (PPP) model, with a portion of the complex reserved for public access.
The panel observed that the structure need not be demolished and could instead be utilised as a revenue-generating hospitality asset. It also suggested retaining one block as a cultural or heritage space, in consideration of public sentiment in Visakhapatnam.
A Cabinet sub-committee comprising Finance Minister Payyavula Keshav, Tourism Minister Kandula Durgesh, and Social Welfare Minister Dola Sree Bala Veeranjaneya Swamy inspected the complex on Wednesday. The team examined the blocks, interiors, and facilities, and reviewed architectural plans with officials from the Tourism and Revenue Departments. They also inspected nearby government land along the beach road.
A review meeting was later held at Yatrinivas with senior officials, including Special Chief Secretary (Tourism) Ajay Jain, District Collector M. Abhishek Kishore, and GVMC Commissioner Ketan Garg.
Officials said several suggestions had emerged regarding the future use of the complex, including its conversion into a hospital, museum, planetarium, cultural centre, or State guest house, while some also favoured demolition or allowing public viewing of the structure.
The committee noted that maintenance costs would range from approximately ₹25 lakh per month for basic upkeep to nearly ₹1.5 crore for full luxury maintenance, making hospitality use the most viable option.
According to the ministers, major hospitality groups — including Taj, Tata, Leela, and Atmosphere Core — have expressed interest. The government will soon issue a notification inviting expressions of interest, followed by an RFQ-based selection process.
The sub-committee clarified that it will only make recommendations, with the final decision resting with the State Cabinet, and that a detailed report will be submitted shortly.