Hi Prema,
By looking at the error your BPM runtime version is 4.6 and your NWDS compiler version is 4.7, so according to the note which is in your error description, your PI version is PI 7.4 SP7 is it right? if yes you need to install NWDS 7.31 SP12 as per this note 1791485 - NWDS 7.3 EHP1 as development environment for SAP NetWeaver 7.4 and use JDK 1.6.
You currently installed NWDS PI 7.31 SP17 which is having compiler version of 4.7.
Release 7.31 SP14 / 7.40 SP9
Compiler version: 4.7
Runtime version: 4.7
Regards,
Praveen.