Hi Pavan,
Even I have done the same thing, installed local one and tried to use the UI5 repository and I get the same error. What i realized later is that my SAP back-end is not up to the SP level yet and hence does not support. Try finding /UI5/UI5_REPOSITORY_LOAD program in your SAP backend in SE38 tcode. If it doesnt have it, then your system wont support.
This link might clarify a little more.
ADT Feature Availability Matrix for AS ABAP Releases
Regards,
Ags