Thanks all for your inputs. The JAVA_HOME path was wrongly set till the Bin folder. Also created CLASSPATH and PATH variables under User variables under Environment variables.
Below are the values set which made the installation going ahead.
System Environment variables -
JAVA_HOME - *C:\Program Files\Java\jdk1.8.0_60*
PATH - C:\Program Files\Java\jre1.8.0_66\bin
User Environement variables -
PATH - C:\Program Files\Java\jdk1.8.0_60\bin
CLASSPATH - C:\Program Files\Java\jdk1.8.0_60\lib