Cannot read Excel file from SQL Server

EXEC sp_configure 'show advanced options', 1
RECONFIGURE
GO

EXEC sp_configure 'ad hoc distributed queries', 1
RECONFIGURE
GO

USE [master] 
GO 

EXEC master.dbo.sp_MSset_oledb_prop N'Microsoft.ACE.OLEDB.12.0', N'AllowInProcess', 1 
GO 

EXEC master.dbo.sp_MSset_oledb_prop N'Microsoft.ACE.OLEDB.12.0', N'DynamicParameters', 1 
GO

Reading Excel

DECLARE @SQLconnect VARCHAR(8000)

SET @SQLconnect =  'SELECT * FROM OPENROWSET(''Microsoft.ACE.OLEDB.12.0'',
                       ''Excel 8.0;Database=D:\WAGES.xlsx;'', 
                       ''SELECT * FROM [Sheet2$]'')'
                       EXEC (@SQLconnect) 

Exception

Msg 7399, Level 16, State 1, Line 1

The OLE DB provider "Microsoft.ACE.OLEDB.12.0" for linked server "(null)" reported an error. The provider reported an unexpected catastrophic failure.

Msg 7303, Level 16, State 1, Line 1

Cannot initialize the data source object of OLE DB provider "Microsoft.ACE.OLEDB.12.0" for linked server "(null)".

Sometimes it gives error sometimes it goes in infinite loop of execution.

I am getting this error after installing SQL Server 2008 R2 over SQL Server 2012.

• OS Windows 7 32 bit os


• SQL Server 2008 R2 and SQL Server 2012 installed