More than two years after coming to power, the Chandrababu Naidu government at last appears to be taking some decision on the future use of the controversial Rushikonda tourism complex constructed during the previous YSRCP regime.
Following a series of negative media reports, the Cabinet sub-committee on the issue met in Visakhapatnam on Wednesday to take a final decision, which could subsequently be approved by the state Cabinet.
The committee has been reviewing multiple proposals and technical reports regarding the utilization of the buildings and has undertaken another round of inspections before finalizing its recommendations.
Ministers Payyavula Keshav and Kandula Durgesh, along with Deputy Speaker B.V. Swamy and senior officials from the Tourism and Revenue Departments, inspected the buildings constructed on Rushikonda Hill.
The tourism complex, built at a cost of approximately Rs 452-453 crore, has remained unused despite several rounds of discussions by the cabinet sub-committee.
The government has been exploring various options to bring the property into productive use while ensuring optimum returns on public investment.
One proposal involved leasing the facilities to the hospitality sector.
However, several international hotel groups reportedly informed the government that the existing structures were not ideally suited for hospitality operations without significant modifications and additional construction.
Some firms also sought permission for structural changes and expansion of facilities.
The sub-committee has sought further feedback from officials regarding the feasibility of such modifications. It is expected to meet once again in Visakhapatnam before submitting its final report to the government.
Following the committee’s deliberations, the ministers are expected to brief chief minister N Chandrababu Naidu on their findings and recommendations.
The Andhra Pradesh Tourism Development Corporation (APTDC) had earlier invited tenders for the operation and maintenance of the complex and offered the adjoining nine acres of vacant land as part of the package.
Several prominent hospitality groups, including the Taj Group, Fema Group and Atmosphere Core, reportedly submitted bids.
However, officials later found that nearly seven of the nine acres offered alongside the complex fall under the Coastal Regulation Zone (CRZ), complicating development plans.
As a result, the sub-committee’s assessment of the feasibility of modifications and future utilization has assumed significant importance, with its report likely to shape the government’s final decision.
