Dear Sanket,
Go to SM51 and find the available servers on the development system.
Then go to OMIQ transaction and set the development server there.
You cannot run parallel processing on production server from development system.
Normally this issue happens when production is copied to quality and development systems and you should set the destination for parallel processing manually when system copy is done as a part of post system refresh activity.
If you dont want to do all this you could just un check parallel processing indicator in MD01.
Hope this helps 
Best Regards,
Ameya B.