ORA-16402: ONDEMAND archival requires FAL_CLIENT and FAL_SERVER support
Cause : The archivelog destination TRANSPORT=ONDEMAND attribute was specified on the primary database. Use of the TRANSPORT=ONDEMAND attributes requires that the corresponding standby database explicitly specify the FAL_CLIENT and FAL_SERVER initialization parameters.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Make sure the FAL_CLIENT and FAL_SERVER initialization parameters are explicitly specified on the standby database that received this error.
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.