The Presidential Palace said on Monday that President Ashraf Ghani has suspended the 500kV power project for six months.
In a statement issued on Monday, the presidential palace said that the decision to run the power line through Salang instead of Bamiyan was taken by the former government in 2013.
But according to the statement, the project has now been suspended for six months so as to ensure Bamiyan gets enough electricity.
According to them, Bamiyan was initially to get 30 megawatts of electricity by 2023 but in accordance with the new plan it will now get 300 megawatts by 2018.
The statement said the government has taken steps to discuss the matter with protesters over the past two weeks but protest organizers rejected the request.
The statement meanwhile was issued as thousands of people took to the streets on Monday in protest against the power line project.
Government insists however that its doors are open for discussions.
Karim Khalili, a local MP, meanwhile addressed the crowd gathered in Kabul and praised them for having held a peaceful protest.
He assured them that their message would be passed on to the authorities. He also asked that they disperse and return home.
The presidential palace meanwhile reiterated in its statement that a commission has been tasked to review the controversial project and that the task team members have ten days to report back to the president.