Prime Minister Narendra Modi and Afghan President Ashraf Ghani are set to hold a virtual summit on Tuesday. Sources said both sides will sign the Shahtoot dam project worth $286 million.

"It [Shahtoot dam] will provide potable water to 2 million residents of Kabul, which is very important since the city has been facing water crisis for years -- as the population density grew and resources became scarce," the source said.

This will be the second dam-building project that India will undertake in Afghanistan. Earlier, India helped in building the Salma dam in Herat province of the country.

Sources said the two sides will also discuss counter-terrorism cooperation and concerns regarding cross-border terrorism.

Apart from the leaders, External Affairs Minister S Jaishankar and his Afghan counterpart Mohammed Haneef Atmar will attend the meeting.

Extending its "Neighbourhood First" to Kabul, Afghanistan became the 18th nation to receive 'Made in India' Covid vaccine on Sunday.

Foreign Minister Atmar tweeted, "My profound gratitude to my friend Dr S Jaishankar, the government and people of India for assisting 500,000 dozes of "Made in India" vaccines to address Covid spread in Afghanistan. A clear sign of generosity, commitment and strong partnership indeed."

Afghanistan's Ministry of Foreign Affairs expressed their gratitude and emphasised the importance of the strategic partnership between the two nations.

"The Ministry of Foreign Affairs of the Islamic Republic of Afghanistan would like to express its sincere gratitude for the assistance and delivery of the first shipment of the Covid-19 vaccine (Covishield) by Afghanistan's generous supporter and strategic partner, India," said the statement.