At last found the problem. In my /etc/network/interfaces, I had an entry for
eth0 as
auto eth0
iface eth0 inet manual
On commenting these 2 lines, as well as the entry for ppp connection
which I had been using a while ago, network manager is able get
connected when booting/logging in. Am not sure what set the eth0 to
manual, may be it happened when using ppp.
Closing this issue as it might be something wrong with my system and not
a generally happening bug.
** Changed in: network-manager (Ubuntu)
Status: New => Invalid
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not connected to network when booting
https://bugs.launchpad.net/bugs/290973
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