Swapna,
The value of the name must be a non-colonized XML name. That's the error you are gettimg. Yes, schemas can have namespaces. The element declarations in a schema file are in the namespace specified by the targetNamespace declaration.
In your declaration, your intent is not clear. If your intention is to declare an element with name 'type' and that this element belong to the 'cd' namespace, then
you should use a different solution. OTOH, if your intention is to declare an element which is of the same type as another element 'cd:type' that is defined elsewhere then you should use the
ref attribute. Here 'cd' represents a namespace.
If you could clarify what your intent is, we could discuss more.
- m