Thanks for the reply.

The following system variable exists

RUBYOPT=rubygems rubygems

I also tried:

irb(main):013:0> require 'rubygems'
=> false
irb(main):014:0> require 'sqlite3'
LoadError: No such file to load -- sqlite3
	from c:/ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:18:in
`require__'
	from c:/ruby/lib/ruby/site_ruby/1.8/rubygems/custom_require.rb:18:in
`require'
	from (irb):14
	from :0
irb(main):015:0> 

Thanks,
basi