ORA-14325: only LOCAL indexes may be specified in this clause
Cause : A global index has been specified in the UPDATE INDEXES (..) clause
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Only specify local indexes when using this clause
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.