The transfer or acceptance of land has emerged as a contentious issue between the GVMC and Railways, potentially causing a delay in laying the foundation stone for the New Railway Zone - South Coast Railway. According to the Union Minister for Railways, Ashwini Vaishnaw, the Railways is still awaiting the availability of the 52-acre land parcel allocated to them at Mudasarlova.

It is worth noting that the Visakhapatnam Municipal Corporation (GVMC) had acquired certain lands from the railways for various development projects, including road widening for flyover construction, building houses for the poor, and establishing the BRTS road.

Interestingly, a significant portion of the allotted land parcel is purportedly marshy and deemed unsuitable for constructing any structures. Both Railways and GVMC authorities have planned to inspect the land to determine its suitability for construction.

Railway authorities stated that these lands fall under the purview of the Mudasarlova reservoir and are designated for Municipal Water Works. GVMC Commissioner CM Saikanth Varma informed TOI that while it was labelled as municipal water works, it is not objectionable and is suitable for alienation. "We sent a letter to the Railways a month ago, expressing our readiness to provide the lands," he stated.

A senior railway official, speaking on condition of anonymity, mentioned that Railway Authorities have requested state government authorities to confirm the classification of the land allotted at Mudasarlova. The official emphasized the need to ascertain the classification and feasibility of the lands if the Railways were to establish headquarters on them.

These circumstances suggest a potential delay in laying the foundation stone for the new zone's headquarters complex. The railway authorities have already identified alternative land among their vacant lands close to the Railway Station, with the Wireless Colony being considered for the headquarters complex. The Railway authorities noted that there has been no communication regarding the foundation stone for the headquarters building to date.