But this doesn't seem to work out.

Currently the systems execute properly with the following outputs

GGSN Output:

root@nist:/home/nist# ggsn
cmdline_parser_configfile
listen: 127.0.0.1
conf: /etc/ggsn.conf
fg: 1
debug: 1
qos: 0x0b921f
apn: internet
net: 192.168.0.0/24
dynip: 192.168.0.0/24
pidfile: /var/run/ggsn.pid
statedir: /var/lib/ggsn/
timelimit: 0
gtpclient: Initialising GTP tunnel
openggsn[3822]: GTP: gtp_newgsn() started
Creating tun interface
Setting tun IP address

Osmo-SGSN Output:
root@nist:/home/nist# osmo-sgsn -c OpenBSC_GPRS/openbsc/openbsc/src/gprs/osmo_sgsn.cfg
<0010> gprs_ns.c:199 NSVCI=65534 Creating NS-VC

root@nist:/home/nist# osmo-pcu
No config file: 'osmo-pcu.cfg' Using default config.

With these I also ran:

Osmo-NITB

Osmobts-TRX

Osmo-TRX

All of these run normally as well.
My UE is able to detect the network as well but not able to connect with it.

Given below are the config file entries

listen 127.0.0.1

osmo-sgsn.cfg:
gtp local-ip 127.0.0.2
ggsn 0 remote-ip 127.0.0.1
.....
 encapsulation udp local-ip 127.0.0.2

open-bsc.cfg:
  gprs nsvc 0 remote udp port 23000
  gprs nsvc 0 remote ip 127.0.0.2

I had the following doubts regarding the given installation procedure