The dam's construction began in 1987, although the project dates back to 1961 when Jawaharlal Nehru, the first prime minister of India, laid down the first stone for the foundation.
It was finally facilitated after he became the Prime Minister as Narmada Control Authority granted permission to raise height from 121.92 metres to 138.68 metres by erecting sluice gates over the dam on Modi's 17th day as Prime Minister on June 12, 2014.
The power generated from the dam will be shared by three states, Madhya Pradesh in central India and Maharashtra and Gujarat in the west, according to officials. The waters of the River Narmada will help citizens and transform lives, he added. "But we were determined not to make it a political battle", he said.
"We especially remember two great people today, Sardar Patel and Dr. Ambedkar, who as minister gave great importance to irrigation and waterways", PM Modi said. "It did all it can to ensure India cannot have such a mega project".
The Congress on its part alleged that while the dam project would have been complete, the benefits would not accrue to farmers in the state due to non-availability of sub-canals in sufficient numbers.
One of the 30 dams planned on the Narmada, the Sardar Sarovar Dam is the largest of these structures to be built. "With 1.25 billion people with me, I can't dream small", he said.
The Prime Minister said that in the western part of the country, there is water shortage, and in the eastern part, there is power and gas shortage. About 57 per cent of the electricity produced from the dam goes to Maharashtra, while Madhya Pradesh gets 27 per cent and Gujarat gets 16 per cent. However, it took 56 years to complete its construction.
The "Jal Satyagraha" protest led by Narmada Bachao Aandolan founder Medha Patkar, demanding rehabilitation of the 40,000 families affected by the Sardar Sarovar Dam, entered the third day on Sunday. He was given an overview of the progress of work at the site.
"This is tragically so despite a long struggle by civil society and activists, and the Supreme Court orders passed in favour of those likely to be affected", it added.
Modi sat on a 51-hour fast in 2006 as the Gujarat chief minister after the UPA government refused to allow raising the height of the dam.