Ok, so it looks like my driver installation was not properly done and the actual diagnostic port was not visible in DFS. I retried and can see all phone info in DFS with 'LGE AndroidNet USB Serial Port (COM10)' connected. A 6-digit SPC is calculated. I manually entered the SPC on top left and clicked 'Send SPC'. The log says DEVICE UNLOCKED. I also changed the Ruim Config to 'RuimOnly' in Programming>General>Config section and clicked 'Write' next to it. But when I restart the phone with Reliance CDMA SIM it still says INVALID SIM.
Can someone please clarify the next steps in little more detail (step by step with screenshots)? I am not sure if I followed all required steps correctly.