After a lot of permutation and combination finally able to get it done. I have seen a lot of discussion forums but not able to get the root cause of the problem finally I figured out that it was related with MySql Devel rpm and static linking of My sql Client Library.
This is a known issue with DBD::MySql. It fails if you try linking MySql Client library Dynamically.
The steps I followed after going through DBD::MySql documentation are as follows:
1. Install Mysql-Client rpm
2. Install MySql-Devel Library
3. Install MySql Shared Libraries
1. tar xvzf DBD-mysql-
2. cd DBD-mysql-
3. cp /usr/lib/mysql/*.a /tmp/mysql-static (to link libmysql.client.a statically)
4. perl Makefile.PL --libs="-L/tmp/mysql-static -lmysqlclient" --testuser=user --testpassword=pass
6. make test
7. make install
All tests passed successfully.