The Committee of Group of Ministers constituted by the State government to examine the future utilisation of the Rushikonda constructions has decided on Wednesday to recommend that the facilities be developed and operated as a hospitality project, maintaining the original purpose for which they were built.

Addressing a press conference after inspecting the Rushikonda complex on Wednesday, Finance Minister Payyavula Keshav, one of the member of the committee, said that they had received a wide range of suggestions regarding the utilisation of the buildings, which included proposals to convert the structures into a planetarium, a government-run guest house, a cultural heritage centre, and other public facilities.

He said that some stakeholders had even suggested demolishing the buildings to send a strong message that encroachments and violations of environmental norms would not be tolerated. However, after extensive discussions, consultations, meetings and debates, the committee concluded that the best course of action would be to continue using the infrastructure as a hospitality and tourism project.

“It was once as a resort and we believe it should continue as resort. The facilities can be developed as a hospitality destination focusing on health, wellness and MICE (Meetings, Incentives, Conferences and Exhibitions) tourism, etc.,” Mr. Keshav said.

Access to public

The Minister also announced that the committee had decided to reserve a portion of the complex for public access. Certain blocks would be earmarked as cultural or public-use spaces to ensure that citizens can benefit from the infrastructure while the remaining portions are utilised commercially.

The GoM has decided to recommend that the State Government invite Expressions of Interest (EOIs) from private players under a Public-Private Partnership (PPP) model. Following the EOI process, the government would proceed with Requests for Qualification (RFQ) to identify suitable agencies for operating and developing the facility, he said.

Mr. Keshav stated that if the selected agency seeks modifications to improve the project’s economic viability, the government would examine such proposals and extend support wherever feasible.

Expressing concern over the financial burden of maintaining the infrastructure, the Minister said the government is currently spending around ₹25 lakh every month on upkeep alone. He noted that operational expenses could rise significantly, potentially touching ₹1 crore per month once air-conditioning systems and other facilities become fully functional.

Highlighting investor interest in the project, Mr. Keshav said representatives from seven to eight companies, including Tata Group entities, had already visited the facility informally. He added that the government would now initiate a formal process to attract investors and operators.