The construction work of the water dam will kick off earlier in August and will be completed over a period of three years.
The water dam will be built with a total cost of around 236 million US Dollars.
The local media outlets, quoting informed sources, reported that India will start the construction work of the dam despite existing security threats.
The Ministry of Energy and Water of Afghanistan had earlier said that the construction of the water dam will kick off during the first weeks of August.
The officials are saying that the dam will provide clean drinking water for up to 2 million residents of the capital besides helping with the irrigation of the agricultural fields.
India has played a major role in the reconstruction of Afghanistan since the fall of the Taliban regime and has invested over $2 billion in various reconstruction and infrastructure projects.
The construction of the major Salma Dam, the new Afghan parliament building, Zaranj-Delaram highway, and some other projects are among the key investments India has done so far in the country.
The government of India pledged a fresh aid package of $1 billion to support the reconstruction projects in Afghanistan during a visit by President Mohammad Ashraf Ghani in late 2016.