For the last six months, the Chandrababu Naidu-led NDA Government in Andhra Pradesh has had a major dilemma – How to use the ₹500 crore private palace built for former Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy on the Rushikonda Hill, Visakhapatnam.

The palace, with four spacious blocks, has come up on a sprawling 10 acre plot on a flat surface on the picturesque Rushikonda with a rare sea-view.  According to official data, the cost of construction alone was ₹431 crore, but including the cost of the last as per market prices, provision of roads, drainage, bulk water supply and a 100 KV power sub-station, the cost of the project is estimated to be in the tune of ₹500 crore. 

Current Chief Minister N Chandrababu Naidu has made a visit to the property and is not been able to so far decide on the appropriate use of the palace mainly due to its expensive nature. It has also triggered a political row over the alleged misuse of public money by the previous regime. 

Tourism facility

The palace was ostensibly constructed as a tourism facility but was later said to become the the resident-cum-camp office of the former Chief Minister Reddy in the event of YSRCP returning to power in the 2024 elections as Visakhapatnam was also tipped to be the capital.

According to a senior official, the AP Government is yet to decide on the fate of the palace. “It cannot be used as a tourism facility due to the very design and the expensive furniture used. It is not easy to convert it into a luxury hotel in view of the concerns over the ecological protection in the region nor can it be used as a government office,’‘ he said. It remains to be seen what will be the fate of the building finally. 

A look at the official list of expensive items (all imported) in the palace released by the NDA Government from the expenditure records of previous YSR Congress Party’s Government led by YS Jagan Reddy is beyond imagination. The previous Government had spent ₹25 lakh on a bathtub and ₹5 lakh each on the number of commodes in different rooms. In addition, exquisite imported marble and chandeliers costing ₹2 lakh decorating the vast corridors of the different blocks apart from a home theatre with a wall-to-wall screen have escalated the costs further.

It government spent ₹50 crore on landscaping and ₹33 crore on interior décor. There is central air conditioning throughout the entire complex, including the restrooms. A dining hall with a view of the sea, each bedroom with twelve beds and the list goes on.