I setup the FTP server on Machine A 192.168.1.105 and created the YUM repo. And placed following contents in it.
#vi rhel-localftp.repo
[rhel-localftp.rep]
name=bla bla bla
baseurl=file:///var/ftp/pub/Server(RPMs are under Server folder)
enabled=1
gpgcheck=0
then installed httpd everything worked fine on Machine A.
Now turn of Machine B 192.168.1.106
I created the repository to access the RPMs from Machine A and contents are
#vi remoteftp.repo
[rhel-remoteftp.rep]
name=bla bla bla
baseurl=ftp://192.168.1.105/var/ftp/pub/Server
enabled=1
gpgcheck=0
and then i tried to install package and it gave me this error
Note: There is no Firewall in between them

Do i have to install FTP server also on Machine B
repodata/repmod.xmlinServerdirectory? – pbm Feb 26 at 20:33