CEO of the National Unity Government (NUG) in a statement on Saturday welcomed the inauguration of Salma Dam and said the development would have a profound impact on Afghanistan.
In the statement he said: "This dam isn't just an effort for electricity and agriculture but a step forward to control and manage our water in every corner of the country."
He said: "We want other countries in the region to believe in our future too and become good, loyal and honest neighboring partners of Afghanistan."
He states that the Afghan-India Friendship Dam, also known as Salma Dam, is another example of mutual trust, honesty and loyal friendship between the two nations.
He said that "our dream of Salma Dam has come true. With the support of India, Afghans today achieved a goal that was set over four decades ago."
He thanked the government and people of India for their unconditional support.
"India isn't a donor country but a reconstruction partner. Congratulations to our people for the inauguration of the Afghan-India friendship dam in Herat. A much needed step forward for self-reliance," he added.
His statement came just hours after Afghan President Ashraf Ghani and India's Prime Minister Narendra Modi officially inaugurated the massive hydroelectric power project in Herat province.
The dam was built and funded by India.
Also welcoming the move, former Afghan president Hamid Karzai has called the inauguration of the dam "a good achievement" for Afghanistan.
In a phone call with Modi, Karzai said that Salma Dam and Chabahar Port are the largest projects to date and with the inauguration of these two projects Afghanistan will change into a transit hub in Asia.
He also called India a good partner to Afghanistan and said India has played a very active role in Afghanistan's reconstruction over the past 15 years.
Located in the Chesth-e-Sharif district, the hydroelectric project, which is on the Hari Rud river, is expected to benefit hundreds of thousands of families in four districts of the province, by providing them with electricity and irrigation water.
The dam, which is 20 km in length and three kilometers wide, has a water storage capacity of 640 million cubic meters. This will be utilized to generate 43 megawatts of electricity for 40,000 families and will irrigate 80,000 hectares of farmland, belonging to 50,000 families.
He said that with India's help, a dream stretching back 40 years was realized on Saturday.
The dam was originally built in western Herat province in 1976 before being damaged during the civil wars of the 1990s but has now been rebuilt by some 1,500 Indian and Afghan engineers. In 2006, India committed to funding the completion of the Salma Dam.
India has poured more than $2 billion into Afghanistan reconstruction projects and humanitarian aid, making it one of the largest donors to the war-torn country.
A new parliament building in Kabul and major power line and road construction have been among the main projects funded by India.