Hi,
The issue got fixed. Luckily, my colleague had a synced version of this DC in his local NWDS. So, I asked him to create a new activity and manually add the '.dcdef' file to the dc and checkin the changes. The '.dcdef' file was successfully checked-in and now I am able to do 'create project' for that DC in my NWDS workspace.
Regards,
Yuvaraj