The uncertainty around the future of the Rushikonda Palace in Visakhapatnam is nearing closure. The Andhra Pradesh government is preparing to take a clear call on how to utilise the luxury structures built on the hill.

A cabinet sub-committee set up by the coalition government is reviewing the options. The focus is straightforward. Convert a high-cost asset into a productive and revenue-generating facility.

The Rushikonda complex was built at a cost of over ₹400 crore. It replaced earlier tourism department resorts that used to generate a steady income. That revenue stream is now gone. In its place stands a high-maintenance property that adds financial pressure. Monthly upkeep and power costs alone run into lakhs, making it a burden on the state exchequer.

The committee is not looking at symbolic use. It is aiming for a functional model that serves both public interest and financial sustainability. The idea is to bring the property into active use rather than let it remain idle.

Two clear options are under consideration. The first is to convert the complex into a luxury hotel or resort. Leading hospitality brands such as Taj and Leela have shown interest. Their involvement could turn the property into a premium tourism destination. The second approach is to develop a structured revenue model that ensures continuous returns to the government.

The committee will finalise its recommendations and submit a report to N. Chandrababu Naidu. The state cabinet will take the final decision based on this report. The government wants to move away from passive assets and focus on productive utilisation and with this, Rushikonda Palace now stands at a turning point.