Prime Minister Narender Modi and Afghan President Ashraf Ghani jointly inaugurated Kabul's Stor Palace via video conference and called the monument a "setting for many momentous historical events".

"The inauguration signalled and showed our joint commitment to strengthening the foundations of modern Afghanistan. The India-Afghanistan-Iran transit corridor agreement that we signed in May this year was another land mark in our partnership," Modi said.

"It manifested our clear and common determination to build new pathways for Afghanistan's economic progress and prosperity," he said.

Modi also recalled the time when he inaugurated the Afghan Parliament on December 25 last year.

"The palace has been the setting for many momentous historical events. To those who cannot see beyond shadows of violence in Afghanistan, the restored Stor palace is a reminder of the glory of Afghanistan's rich traditions," Modi said about the Stor Palace.

"And for our Afghan brothers and sisters, it revives the beauty, the richness and splendour of lost memories of Afghan society," the Prime Minister said.

Indian government had promised to help Afghanistan renovate many of its war damaged structures, among which were Executive Block of Afghan Parliament building and the Stor Palace -- also known as Darul Aman Palace -- in Kabul city.