ORA-12737: Instant Client Light: unsupported server character set string
Cause : The character set specified is not allowed for this operation or is invalid. 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.