The future of the imposing Rushikonda palace complex in Visakhapatnam has once again taken center stage in Andhra Pradesh politics and policy. The coalition government’s Cabinet Sub Committee met for the third time to decide how the massive hilltop structures, built by the previous regime, can be converted from a liability into a public asset.

The meeting was led by Finance Minister Payyavula Keshav and Tourism Minister Kandula Durgesh, along with senior tourism officials. Their focus was clear. The buildings must serve the public and also generate sustainable revenue for the state.

Several well known hospitality companies have shown interest in operating the complex as a premium tourism destination. Proposals include luxury stays, curated cultural spaces, convention facilities, and public zones that can enhance Visakhapatnam’s tourism appeal. But the plan faces a tough obstacle. Of the nine acres identified near the site for expansion, seven acres fall under Coastal Regulation Zone norms, where construction is strictly prohibited.

This regulatory barrier has forced the government to think creatively. Officials discussed limited vertical expansion of existing blocks, which experts say may be feasible with approvals. At the same time, the government plans to reserve two blocks purely for public use, cultural programs, and tourist services.

Hospitality majors such as Taj Group, The Leela Group, and Atmosphere Core have already come forward with proposals.

A detailed report will be placed before the Cabinet later this month. The decision is expected to define how Andhra Pradesh balances tourism growth, environmental responsibility, and public interest at one of its most sensitive landmarks.