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Inordinate delay in deciding fate of Rushikonda Palace irks AP CM Naidu

The inordinate delay in taking a decision on monetisation of extravagant constructions made by the previous YSRCP Government at Rushikonda HIlls in Visakhapatnam has irked Andhra Pradesh Chief Minister N. Chandrababu Naidu.

Inordinate delay in deciding fate of Rushikonda Palace irks AP CM Naidu

Inordinate delay in deciding fate of Rushikonda Palace irks AP CM Naidu
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14 Dec 2025 5:47 PM IST

Visakhapatnam: The inordinate delay in taking a decision on monetisation of extravagant constructions made by the previous YSRCP Government at Rushikonda HIlls in Visakhapatnam has irked Andhra Pradesh Chief Minister N. Chandrababu Naidu.

The buildings constructed amid allegations of violating Coastal Regulation Zone (CRZ) guidelines to accommodate the Chief Minister's Office (CMO) had raised a lot of dust during the run-up to the general elections in 2024. After TDP was voted back to power along with its allies BJP and Jana Sena Party, the coalition had vowed to put it into proper use, for which it had sought public opinion and views from the hospitality sector. The buildings were built at an estimated cost of Rs.450 crore by demolishing the old resorts of AP Tourism Development Corporation.

The YSRCP leaders including former Minister for Industries Gudivada Amarnath had stoutly denied the allegations that it was built lavishly with a helipad and landscaped garden overlooking the blue waters of the Bay of Bengal to house the CMO as part of three capital plan by the erstwhile government. The party had stated to the main purpose was to provide a secure guesthouse for VVIPs like President of India, Prime Minister, foreign dignitaries and others visiting the City of Destiny, who are being forced to stay either at the guesthouse of Eastern Naval Command or in five star deluxe hotels.

At the recent Cabinet meeting held at Amaravati, Naidu expressed his ire at the undue delay and directed the Cabinet Sub-Committee to expedite a decision. The committee consists of Tourism Minister Kandula Durgest, Finance Minister Payyavula Keshav and Social Welfare Minister Dola Bala Veeranjaneya Swamy. Deputy Chief Minister Pawan Kalyan, who was present, directed his party colleague Kandula Durgest to intervene and complete the process immediately.

The constructions made at the picturesque Rushikonda beach have turned into a white elephant due to heavy expenditure on maintenance and security. The electricity cost itself runs into Rs.1.5 crore annually. .The building is fitted with imported interiors and extensive landscaping needing periodical maintenance for housekeeping, gardening, plumbing and other upkeep costs.

Tour and Travel Association of Andhra (TTAA) and Andhra Pradesh Star Hotels' Association (ASHA) have suggested the use of the buildings for film shooting, MICE tourism or housing consulate offices of the United States, United Arab Emirates and other countries, with whom Andhra Pradesh has rich cultural and trade links.

ASHA president RV. Swami said hosting foreign consulate offices will position Visakhapatnam as a strong candidate to fill the strategic gap for supporting NRI diaspora services. "This will increase business travel and impact significantly on promotion of tourism," he told Bizz Buzz. He said another option given by them was to convert the four blocks into a luxury beach resort and a convention destination with banquet halls, wedding venues, beachfront dining and water sports, an idea seconded by TTAA.

Rushikonda Hills Controversy Andhra Pradesh Government Projects Chandrababu Naidu Cabinet Decision Visakhapatnam Tourism Infrastructure CRZ Violation Allegations Chandrababu Naidu Rushikonda Palace 
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