Rails connects to MySQL from WEBrick but not from Passenger

Rails connects to MySQL from WEBrick but not from Passenger

I just created a new Rails 4 app with MySql as follows:
rails new mysqltest -d mysql
And modified the database.yml with the right credentials.
I generated a sample contoller and updated the routes for root route.
When I start using WEBrick in production,
rails s -e production
The site works. I see the index page.
When I start using Passenger without 3000 port, I see the following error:
database configuration does not specify adapter
(ActiveRecord::AdapterNotSpecified)
Passsenger is running in Production environment