Rushikonda Resort – APTDC Invites Interest for PPP Hospitality Project
Rushikonda Resort – The Andhra Pradesh Tourism Development Corporation has initiated the process of exploring private-sector participation for the operation and future development of the Rushikonda Building Complex near Visakhapatnam. The move follows a recommendation by a Cabinet Sub-Committee to convert the nearly Rs 450-crore property into an international-standard hospitality destination through a Public-Private Partnership model.
EOI issued for operators and investors
APTDC has invited Expressions of Interest from hotel chains, resort operators, hospitality companies, infrastructure developers and investors. The invitation covers the management, upkeep, commercial operation and possible expansion of the existing hilltop complex, along with development opportunities on an adjoining land parcel at the foothills.
The corporation said the EOI is an initial market outreach exercise and is aimed at understanding the level of interest among potential partners. It will also help the agency gather views from industry stakeholders before finalising the project structure.
Project planned in two development stages
The proposal has been divided into two phases. The first phase focuses on the existing Rushikonda Building Complex, including its operation, maintenance and commercial use. Private participants may also be allowed to suggest further development within the available space, subject to approvals from relevant authorities.
Located on a hilltop, the complex occupies around 9.8 acres and includes five G+1 buildings. The total built-up area is estimated at 13,542.21 square metres. The site also has landscaped zones, internal roads, pedestrian pathways and parking facilities.
Scope available for future expansion
Two vacant parcels within the complex have been identified for possible expansion. These areas could allow construction of nearly 4,800 square metres of additional built-up space, though any development will require statutory permissions.
The second phase relates to a separate nine-acre plot at the foothills of Rushikonda. Preliminary assessments indicate that about 1.25 acres of this land may be suitable for G+1 construction. However, the proposed development will depend on Coastal Regulation Zone clearance and other mandatory approvals.
Hospitality, wellness and events in focus
APTDC said the project is expected to remain centred on tourism and hospitality. The proposed model may include leisure facilities, wellness offerings, business events and MICE activities, covering meetings, incentives, conferences and exhibitions.
The corporation has also indicated that portions of the property could remain accessible to visitors. Proposed public-use facilities may include viewing points, promenades, open spaces, cultural areas and other visitor amenities. The approach is intended to combine commercial hospitality activity with public access to selected parts of the site.
No tender process announced yet
APTDC has clarified that the Expression of Interest should not be treated as a tender or an assurance that a contract will be awarded. The responses received from interested parties may be used to conduct feasibility studies and consultations before a formal Request for Proposal is issued.
A private partner, if selected later, would be chosen through the RFP process after the project’s commercial and regulatory framework is finalised.
Cabinet decision awaited on committee recommendation
The Cabinet Sub-Committee that examined the future use of the complex had recommended its development as a luxury resort. The panel included Finance Minister P Keshav, Tourism Minister Kandula Durgesh and Social Welfare Minister Dola Sree Bala Veeranjaneya Swamy.
The committee also suggested that one of the blocks could be retained for public access and developed as a cultural or heritage centre. Its report noted that the proposal could improve the use of the public asset, create revenue for the state and preserve public access to parts of the complex.
The recommendation is expected to be placed before the Andhra Pradesh Cabinet for a final decision.