ORA-28150: proxy not authorized to connect as client
Cause : A proxy user attempted to connect as a client, but the proxy was not authorized to act on behalf of the client.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Grant the proxy user permission to perform actions on behalf of the client by using the ALTER USER ... GRANT CONNECT command.
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.