ORA-14065: ALLOCATE STORAGE may not be specified for a partitioned table
Cause : User specified ALLOCATE STORAGE clause in ALTER TABLE statement issued against a partitioned table which is illegal.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Remove the illegal option. If it is desired to add storage to individual partitions, ALLOCATE STORAGE clause may be specified with ALTER TABLE MODIFY PARTITION statement.
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.