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Rushikonda Palace turns into a white elephant, uncertainty over future continues

Rushikonda Palace faces an uncertain future as it turns into a white elephant, with mounting costs and unclear plans for utilization or revival.

Rushikonda Palace turns into a white elephant, uncertainty over future continues

Rushikonda Palace turns into a white elephant, uncertainty over future continues
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18 Aug 2025 1:06 PM IST

The 'tourism resort' redeveloped by the erstwhile YSRCP Government at the sea-facing Rushikonda Hills by spending around Rs.700 crore on reconstruction and extravagant interiors has turned into a white elephant for over a year.

The change in government after May, 2024 Assembly elections put a full-stop to YSRCP's reported plan to convert the resort, very often described by many as 'Jagan Palace' from converted into the Chief Minister's Office (CMO).

YSRCP wanted to make Visakhapatnam as the executive capital as part of 3-capital plan while the TDP-led NDA coalition had promised to retain Amaravati as the only capital of Andhra Pradesh during the campaigning.

Now with the coalition undecided on how to use the new resort built lavishly with 12 spacious bed rooms and very expensive interiors atca prime location, the building is costing lakhs of rupees in maintenance and security with no Return on Investment (RoI) to the administration.

TDP MLA and former Minister Ganta Srinivas Rao told Bizz Buzz that the previous government spent nearly Rs.500 crore on construction and Rs 200 crore on designing and interiors.

He said each chandelier cost Rs.15 lakh, each bath tub Rs.25 lakh and commode Rs.5 lakh. It has banquet halls, furniture imported from Italy and other countries and a spa and a jacuzzi.

The government is contemplating to open the complex to public by turning it into a museum, apparently to embarrass the previous regime or allow it for hosting film shootings, conferences marriages and elite social get-togethers.

YSRCP district president and former Industries Minister Gudivada Amarnath said the coalition is trying to mislead the public and their intention was to provide comfortable stay for VVIP guests like President and Prime Minister.

The construction of the project had raised serious concern among green activists over alleged violation of Coastal Regulation Zone (CRZ) guidelines.

Noted social activist and former IAS officer EAS Sarma had sought drastic steps to restore damage done to the environment by taking up construction at Rushikonda hills by violating CRZ guidelines.

"Apparently, neither the Municipal Administration and Urban Development nor VMRDA seems to be aware of the statutory mandate in the Master Plan of VMRDA (erstwhile VUDA) notified by MA&UD vide GO Ms. No. 3454 dated 30-6-2006, which requires the natural features, especially the hilly terrain. to be conserved," he stated in a complaint.

Rushikonda Palace white elephant project unused infrastructure government projects tourism development Andhra Pradesh news heritage projects project uncertainty palace future infrastructure burden 
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