The Andhra Pradesh government is nearing a decision on how to use the controversial building atop Rushikonda hill in Visakhapatnam. The Cabinet Sub-Committee, including Finance Minister Payyavula Keshav and Tourism Minister Kandula Durgesh, met on Wednesday. They favor a hospitality-driven model that generates revenue and serves public interests without burdening the state budget. Social Welfare Minister Dola Bala Veeranjaneya Swamy joined virtually. Officials from the Tourism Department briefed the committee on proposals and regulations. Hospitality firms like Taj, Leela Palace, Atmos Core, and FEMA have shown interest. However, ministers noted that the current building is not fully suitable for hotel use and may need extra construction. A key issue is the Coastal Regulation Zone (CRZ) norm. Out of nine acres under Rushikonda Hill, construction is banned on seven acres, leaving only two acres for development. The committee discussed ways to use this land without breaking environmental laws. It was proposed to convert two blocks of the complex into an art gallery and cultural event spaces. Minister Keshav said the sub-committee will meet again soon to examine more options. They plan a full survey of tourism lands and will hold an online meeting with the Group of Ministers on December 28. The final recommendations will go to the State Cabinet, with preference for an international-standard hospitality model. Minister Durgesh revealed the Tourism Department lost ₹7 crore annually and now spends ₹25 lakh monthly on maintenance. The ministers criticized previous decisions by the YSRCP government, saying demolishing revenue-generating resorts to build this structure caused big losses.