Even as uncertainty prevailed over the status of palatial bungalows on Rushikonda hill constructed during the YSR Congress party regime in Visakhapatnam, the Telugu Desam Party-led coalition government appears to be planning to allow more constructions on the hills.
At the third meeting of the cabinet sub-committee constituted to examine options for the utilisation of the Rushikonda palaces held on Wednesday in the secretariat, it was noted that the existing palace structures are not fully suitable for hotel operations in their present form, and suggestions were made to consider constructing additional buildings to make the project commercially viable.
State finance minister Payyavula Kesav, one of the members of the cabinet sub-committee, said that several proposals received from leading hospitality players were discussed.
They confirmed that reputed groups such as Taj, The Leela, Atmosphere Core, and FEMA had expressed interest in redeveloping and operating the Rushikonda property.
The committee has broadly agreed to move ahead with a hospitality-driven model, provided it is financially viable and compliant with environmental and regulatory norms.
International best practices in beachfront development, such as those followed in the Maldives and Puducherry, were also discussed as reference models.
Speaking to the media, Keshav said the government is inclined to hand over the Rushikonda Palace for hospitality use, but clarified that some stakeholders had demanded an additional nine acres of land beneath the hill for hotel development.
“As per Coastal Regulation Zone (CRZ) norms, construction is prohibited on seven of those nine acres, leaving only two acres available for potential use. The committee discussed how best to utilise this limited land,” he said.
He said the last two blocks of the Rushikonda Palace would be retained for public use, including an art gallery, cultural programmes and other civic activities.
Tourism minister Kandula Durgesh said after examining CRZ regulations, the committee found that construction of up to 60,000 square feet is feasible on the hilltop.
“While multiple organisations have shown interest, the government is focusing only on a viable and sustainable project. The preference, he said, is to develop rooms and related facilities to support a hospitality-led model. A final decision on the utilisation of the Rushikonda Palace is expected shortly,” he added.
