No bidders for Rushikonda palace project

The Andhra Pradesh government's plan to transform the troubled Rushikonda palace into a top-tier resort through a public-private partnership has stalled, with no private entities showing interest, state tourism minister Kandula Durgesh reported on Saturday. During a press conference in Rajahmundry, Durgesh revealed that the YSRCP-led administration had constructed the palatial complex for "personal luxury" rather than commercial purposes.

Major hotel chains are wary of the large room sizes, which do not align with standard hotel operations, he stated. Although there are no immediate takers from large hospitality chains, Durgesh assured that the government is committed to eventually utilizing the complex for hospitality or enhancing tourism. The sprawling complex, built during the tenure of former chief minister Y S Jagan Mohan Reddy, has been idle for two years, costing the state exchequer ₹7 crore annually for upkeep.

On July 3, the Andhra Pradesh Tourism Development Corporation (APTDC) extended an invitation for expressions of interest (EOI) from hospitality operators, hotel chains, resort developers, infrastructure developers, and investors to manage, maintain, and commercialize the Rushikonda building complex. The proposal envisions a two-stage development.

In Phase 1, a private operator will handle the operation, maintenance, and commercial management of the existing 9.8-acre complex, which comprises five G+1 building blocks with a total area of 13,542.21 square meters, featuring landscaped gardens, internal roads, pedestrian pathways, parking facilities, and supporting infrastructure.

Phase 2 includes developing a 9-acre land parcel at the base of Rushikonda, where about 1.25 acres are suitable for G+1 construction, pending Coastal Regulation Zone (CRZ) approvals and other statutory clearances. Despite preliminary interest from renowned hotel brands like Taj, Atmosphere Core, Leela, and Fema, none of them ultimately committed to the venture.