A second run was given after first attempt failed, to install TWRP and custom ROM on Kindle Fire 2 (version 10.2.6).
Thread i followed:
Finally, successfully installed TWRP, backup performed on stock ROM, CM10 deployed, Google Play deployed :)
1. Install Script Manger
2. Download AlienBox.apk
3. Open SM and find downloaded AlienBox.apk
4. Select AlienBox.apk and choose install.
5. Choose to install.
6. Once installed, touch Home icon.
7. Open app tray and touch Main Activity app.
8. Grant root access.
9. Let app run and reboot the device.
10.Copy CM10 zip to Kindle
11. reboot in recovery mode
12 deploy CM10
13 Copy google play apk, vendink apk and Google framework apk to kindle
14 used file manager to move the 3 apk-s to /system/app
15 launched each apk.