The project, officially designated as a tourism resort, has been a point of contention for years.
- Pawan Kalyan inspected controversial structures on Rushikonda Hill in Andhra Pradesh
- The resort was built during YSRCP rule at a reported cost exceeding Rs 500 crore
- Inspection found peeling plaster, water leakage, and high electricity bills of Rs 1.8 crore
Andhra Pradesh Deputy Chief Minister and Janasena Party chief Pawan Kalyan inspected the controversial structures on Rushikonda Hill, a site that has been at the centre of a major political and environmental debate. Accompanied by ministers and party leaders, Mr Kalyan took a tour of the opulent buildings, which were constructed during the previous YSRCP government's tenure.
The project, officially designated as a tourism resort, has been a point of contention for years, with the TDP-Jana Sena alliance alleging that it was built as a private residence for former Chief Minister Y S Jagan Mohan Reddy at a staggering cost of over Rs 500 crore.
During the visit, Mr Kalyan's inspection revealed several issues, including reports of peeling plaster and water leakage in parts of the building. He described the interior of the structures as being in a state of disrepair, with damaged tiles and broken fixtures.
విశాఖపట్నం రుషికొండపై ఉన్న భవంతులను పరిశీలించిన రాష్ట్ర ఉప ముఖ్యమంత్రి శ్రీ @PawanKalyan గారు. ఆయన వెంట రాష్ట్ర మంత్రులు శ్రీ @mnadendla గారు, శ్రీ @kanduladurgesh గారు, జనసేన పార్టీ ఎంపీలు, ఎమ్మెల్సీలు, ఎమ్మెల్యేలు ఉన్నారు. pic.twitter.com/9N1nOpac1b
— JanaSena Party (@JanaSenaParty) August 29, 2025
He highlighted the extravagant expenditure, pointing out that while the previous Haritha resorts on the same hill generated an annual income of Rs 7 crore, the new complex is incurring a massive electricity bill alone of Rs 1.8 crore.
The Deputy Chief Minister sharply criticised the previous administration for the alleged misuse of public funds and gross violations of Coastal Regulation Zone norms. He accused the YSRCP of damaging the ecologically sensitive hill to build a "palace" for personal use. "The previous government misused this space by making it part of the Chief Minister's residential complex and family quarters, instead of treating it as public property," he said, adding that the new government intends for the site to remain under the control of the tourism department.
In a press conference, Mr Kalyan said the project, originally planned with seven blocks at an estimated cost of around Rs 164 crore, has now ballooned to Rs 453 crore despite only four blocks being partially completed.
"When they originally planned for seven blocks, the estimate was Rs 92 crores for the first phase and Rs 53 crores for the second phase - a total of about Rs 164 crores," he said. "Today, the project has reached Rs 453 crores, not even for all seven blocks, but only for four."
To make the project financially viable, Mr Kalyan proposed transforming the site into a MICE (Meetings, Incentives, Conferences, Exhibitions) hub. This would position Visakhapatnam as a destination for business tourism, leveraging the substantial public investment to generate long-term revenue. "If Rs 453 crores of public money is spent, there must be a clear plan on when break even will be achieved," he said. "The government must think like a proper businessman."
He also announced two immediate actions - a building safety audit and a study of potential revenue models.
Mr Kalyan proposed that the Jana Sena Party would present a detailed plan to this effect to the Chief Minister, aiming for a final decision on the project's future by this winter.
He announced that the state government would take up the issue for a detailed discussion in the upcoming Assembly session to bring transparency to the project's costs and purpose.
Mr Kalyan's visit and his subsequent comments have once again intensified the political discourse around the Rushikonda controversy, which has become a symbol of the alleged corruption and excesses of the previous regime.
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