APTDC Alipiri Hotel’s future remains under scrutiny as it moves from delays to decisions

Tirupati: The long-delayed Rs 17 crore hotel project by the Andhra Pradesh Tourism Development Corporation (APTDC) near Alipiri in Tirupati, is finally making progress. Mrugavani Resorts has stepped in as the new lessee to complete construction and manage operations.

The project’s future, however, depends on whether the current state government will uphold the lease terms finalised during the YSRC regime or reconsider the agreement, potentially causing further delays.

Proposed in 2013, the hotel spans 1.03 acres near Alipiri and S.V.R. Ruia Hospital. Envisioned as a premium facility for pilgrims and tourists, it was to feature 110 rooms, a 200-seat restaurant, dormitories, and parking for over 100 vehicles. Despite APTDC’s investment of Rs 11 crore by 2016, the project faced setbacks due to insufficient funds and a lack of private interest.

While projected to generate Rs 5-6 crore annually, the project struggled to secure a partner. In 2018, an additional Rs 10 crore proposal was made but failed to get budgetary approval. Negotiations with Indian Hotels Company Limited also collapsed in 2019, leaving the structure incomplete.

In 2022, the YSRC government leased the project to Mrugavani Resorts for Rs 1 crore per annum, significantly lower than earlier offers of Rs 2.5-3 crore. Critics questioned whether APTDC had undervalued the property. Nevertheless, Mrugavani Resorts is working to complete construction and secure permits, aiming to provide much-needed hospitality infrastructure in Tirupati.

The current government’s decision to honour or revisit the lease terms will determine whether this long-awaited project finally comes to fruition.