My solution was simple! I was actually having this error when checked out a repo from a svn server. I took following steps to remove error
- Cleaned solution
- Went to nuget package manager and uninstalled the entity framework.
- Removed DataModel and its .cs components.
- Shutdown the VS and opened again.
- Installed Entity Framework and Recreated entity model.
- Check if there is any files needed "Include in the solution".
It worked like a charm