ORA-12734: Instant Client Light: unsupported client national character set string
Cause : Only UTF8 and AL16UTF16 are allowed to be used as the national character set. Instant Client Light has only minimal character sets.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Do not use Instant Client Light for this character set
Well, the reason for above error is that i have taken the above script from a 11g database and running it on 10g database. 11g has bring some changes in password management. Below code is executed on 11g and user created successfully, which is expected result.