Date: October 07, 2024

Rushikonda Palace: A White Elephant for AP Government

The Rushikonda Palace, built during YS Jagan Mohan Reddy’s tenure as Chief Minister, has become a financial burden for the Andhra Pradesh government. Initially presented as a grand project, it now drains resources without serving a clear purpose. The current NDA government, which succeeded the YCP regime, is struggling to find a solution to this costly problem.

Massive Costs Behind the Rushikonda Palace

Situated on the scenic grasslands of Rushikonda, this palace cost ₹500 crores to build. Despite its impressive design, it has become a liability. The palace was supposed to be a symbol of development, but now it’s referred to as a “white elephant”—impressive but costly to maintain, with little to no benefit.

Ongoing Financial Drain

Maintaining the Rushikonda Palace costs the Andhra Pradesh government ₹1 lakh daily. This sum covers the salaries of a 150-member crew that handles plumbing, electricity, gardening, and housekeeping. Reports say the palace’s monthly electricity bill alone is ₹6 lakhs. Additionally, unpaid bills from the YCP regime amount to ₹85 lakhs, further increasing the financial burden.

Unclear Purpose for the Rushikonda Palace

The NDA government is unsure about how to use the palace. Officials are debating whether to use it for government activities, which isn’t financially practical, or repurpose it for private ventures like a resort. Both options come with their challenges. Continuing with government usage will add to the losses, and transforming it into a private facility requires more investment.

No Easy Solution

Abandoning the palace would waste the ₹500 crores spent on construction. Yet, maintaining it continues to drain resources without generating any value. This costly venture, with its lack of purpose, has become an expensive and impractical project for the government.