Why is test email but not mail campaigns working with Amazon SES with CiviCRM?
Ashwin - your latest update showing the error reveals the problem.  Either a) your SES account is still in sandbox mode, or b) you skipped the steps about verifying your sender address/domain.  From my instructions:


Log onto AWS, select SES. Note that you only have sandbox access at this time.
Click on "SMTP Settings" on the left, record the server info, generate SMTP credentials and record those too.
Click on "Verified Senders: Domains". Click "Verify a new Domain". Enter the client's domain name; also click "Generate DKIM settings". Remark: the bounce address must be also verified.


If you've already done this, then request to be moved from sandbox mode into production mode:  Instructions here.