I read about SDK versions on GAE and am concluding that it does not matter 
how I upload my application. I do not control the version of SDK that App 
Engine instance is running. In that case app engine instance must  be 
running the latest SDK and should support the Blobstore Api's for free 
applications as well.

Please give me any guidance as to how I could fix this issue. 

Because the Api works perfectly in the development environment and does not 
produce any log after deployment, I am not able to identify what could 
possibly go wrong.

Should I just try enabling billing ?(That is the only option left) Just 
dint want to waste the 9$.

Regards,
Anupam 
  

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