Unable to run CPython Script Executor in Pentaho

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I have python 3.4 installed on my windows 2012 server. When I try to run transformation with CPython Script Executor step, it gives me the below error.

 "python": CreateProcess error=2, The system cannot find the file specified

I am trying to run a simple script which assigns a variable with an integer value.

Any idea, what might be going wrong ?

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Sarang Manjrekar On

This was simply the python path was not set in the environment variables. As soon as I do it, its running OK.