1) In the Server Instance change the value of Portal URI and Portlet URI to null
2) Apply the changes
3) Right click on the portlet app and click RUN
4) Deployment goes successful. This was observed by logging into Liferay portal
Though the deployment goes successful I do not see any portlets in the Services Tab when one expand the Portlets folder
(Global --> Portlets)
Please check a null validation for Portal URI and Portlet URI.
Issue will be addressed in future releases.