capitalise interest on capital of [partners

no you cant

Yes u can otherwise there will only expenses and no income. So it will be capitalised.

Since the construction work is not completed et and the business activity is not started all the expenses incurred should be capitalised by transferring them to Pre operative expenses and the same should be written off over the period of three years after business activity starts...

Hence, interest on capital paid should also be capitalised in this case....