The Andhra Pradesh government’s efforts to find a private operator for the controversial Rushikonda Palace complex in Visakhapatnam have hit a roadblock, with no major hospitality company coming forward to take up the property despite the government pitching it as a potential international-standard luxury tourism destination.
The sprawling beachfront complex has remained largely unused for more than two years since its construction during the previous YSR Congress Party government.
The state is also incurring about Rs 7 crore annually on its maintenance, according to Tourism Minister Kandula Durgesh.
Speaking to reporters in Rajahmundry on Saturday, Durgesh said the government had invited private players to operate and commercially utilise the complex under a public-private partnership (PPP) model, but the proposal had failed to attract a final taker.
“Major hospitality companies are currently unwilling to take over the Rushikonda Palace buildings because the large room sizes do not suit standard hotel operations,” he said.
The minister attributed the design of the complex to the previous government’s decision to construct it primarily for the “personal luxury” of former chief minister Y S Jagan Mohan Reddy rather than with commercial hospitality requirements in mind.
The lack of a private operator comes despite the Andhra Pradesh Tourism Development Corporation (APTDC) inviting expressions of interest on July 3 from hotel chains, hospitality operators, resort developers, infrastructure companies and investors for the operation, maintenance and commercial utilisation of the property.
The government had proposed converting the Rs 452-crore complex into a luxury hospitality destination following recommendations made by a Cabinet sub-committee headed by Finance Minister Payyavula Keshav.
The plan was aimed at generating tourism activity while retaining public access to portions of the property.
Several reputed hospitality companies, including Taj, Atmosphere Core, Leela and Fema, were reported to have inspected the property and shown preliminary interest. However, none ultimately came forward to take up the project.
The absence of a taker leaves the government facing the immediate challenge of finding a commercially viable use for a high-value property that has remained largely idle since its completion.
With the state continuing to spend crores of rupees every year on its upkeep, the government must now decide whether the existing structures can be suitably modified for hospitality use or whether an alternative tourism-oriented model should be explored.




Koni SIGGU LENI JEEVITHAALU, use the PUBLIC MONEY for their PERSONAL LUXURIES. This is a BEST EXAMPLE for that EXTRAVAGANCE LIFE STYLE of our former BRAINLESS C.M 😡
Babu has done credit chori for all the major projects established by the young visionary Jagan but couldn’t steal his wisdom and intelligence, that’s the reason he is unable to sell his outdated tactics to any advanced industrialists. He better handover the state and projects to Jagan in next elections in the interest of state’s development and people’s good.
Née laanti vaaru vundabatey aah 11 ayina vochayi. Oka sari HYD lo Yerragadda ki raa, manchi DR. ki choopistha
Bro..the above comment is done in a sarcastic tone….don’t take it in real…
Medakaya meeda thalakaya, dantlo chemchadu gujju vunna vaadu evadanna AP lo vunna vallu adi correct ani meeru nammuthara?
Lol .. get well soon ..
You get well soon
Sir how is your depression
true jagan’s grabbing and demolishing nature won’t come to anyone else. jagan knows only destruction, religion conversion and ganja
You mentioned that it’s a PALACE in the title. That means JAGLAQ used PUBLIC MONEY to enjoy himself in that PALACE. Konchamaina SIGGU VUNDALI 🤭
“Rushikonda Palace” . Shame on Jagan to wast 500Cr on this . Especially people who back him now also not less than fools . See his last few months statements .. When he was in power he assured every year he will complete polavaram , now he saying Polavaram is not needed , he told every major city will have airport now he opposing new airport in Vizag. he started salary for pastors in his regime .
you say 500cr on a luxurious building is waste….and 300+crore on Yoga Andhra when people like you are yellow blinded, no one can bring realization in you
as usual fake propaganda on yoga from ycp paytms, yoga program sponsored by central government that too just 30 crores event.
they know in 2029 they have to vacate, jai APPSC
Rushikonda Palace: It appears to have been built mainly for Jagan Mohan Reddy’s personal use, while its purpose remained unclear. If the government has no public use for it, let him buy it at a fair valuation or open it to the public for a nominal fee. Otherwise, another three years may pass without anyone coming forward to take responsibility for this palace.
ఆ పాలస్ లు హర్ష, వర్ష కోసం, మా భారతి వదిన కోసం మా అన్న కట్టించాడు రా.. ప్రైవేట్ వాళ్ళకి ఎలా ఇస్తారు,
మా అన్న ఐతే ప్రజా వేదిక లాగా కూల్చేసేవాడు
Vaadi sommu kadhu kadha, yehdhana kulchuthaadu
Until they find someone to lease the building, monthly maintenance expenses should be collected from Jagan. That’s the correct punishment for wasting public money.
Reddy,
That palace is built for Rastrapathi no?
7cr per year for maintenance of a unused building — looks like tdp is eating well by keep ycp in fore front
1st class BURRA ki REST ivalantey aah mathram PALACE ayina vundali. + he always interacts / discuss current politricks with PRESIDENTS in that palace. So, let JAGAN buy that.
PRAJALLA KOSAM Road luu veyataniki tikaana leydhu kani, VEEDI FAMILY kosam public money tho PALACE katukunaadu.
PRESIDENT vosthey vundataaniki anni covering, vaalu vosthey yekada vuntaro kuda veeri party vaariki theylavadha. Burra vuntey saripodhu, dhaaniloo GUJJU kuda vundali 🤭😜
PRAJALLA KOSAM Road luu veyataniki tikaana leydhu kani, VEEDI FAMILY kosam public money tho PALACE katukunaadu.
PRAJALLA KOSAM Road luu veyataniki tikaana leydhu kani, thana FAMILY kosam public money tho PALACE katukunaadu.
PRESIDENT vosthey vundataaniki anni covering, vaalu vosthey yekada vuntaro kuda veeri party vaariki theylavadha. Burra vuntey saripodhu, dhaaniloo GUJJU kuda vundali
Use it for Govt purposes. Why CM or other higher officials cant stay in it when they visit Vizag, why to waste money on Hotels ?