Shikha, The new doc text is not true. This has worked before with RHEV 3.3, the way that RHEV accepts the cloud-init data changed in 3.4. The changes in this bug take into account both methods of attaching cloud-init data and uses the new API endpoints on the newer versions of RHEV allowing cloud-init to function properly again.
Since the problem described in this bug report should be resolved in a recent advisory, it has been closed with a resolution of ERRATA. For information on the advisory, and where to find the updated files, follow the link below. If the solution does not work for you, open a new bug report. https://rhn.redhat.com/errata/RHBA-2015-1744.html