can i copy the role of administrator to another user and remove few capabilities not required ?. Basically, i want to have a user with restricted admin privileges.
Give this plugin a try - http://wordpress.org/extend/plugins/user-role-editor/
To inspect what's attached to a current user, you can use my Current User Deamon Plugin. (There's also a version at the repo, but that's a little outdated.)
Then read a little into Roles & Capabilites in the Codex to get a feeling for what's happening.
Then use the
Basically it's only a) retrieving the roles, b) grabbing the capabilites and c) add a new role (ex. restricted-admin) object that d) get's the reduced capabilities.