The film, based on a novel by Bengali author Sarat Chandra Chattopadhyay, would also be the first Hindi film to be broadcast on Dutch television.
"It's a matter of great honour that the film would premiere at the IIFA awards," said "Parineeta" director Pradeep Sarkar.
"This is a film that will touch the heart not only of Bengalis or Indians but everyone because the author is ever fresh," said Sarkar at a press conference announcing the IIFA awards to be held June 11.
The film would be showcased at the ancient Pathe Tuschinski Theatre and would kick off all around celebration of Hindi cinema in the Netherlands. "I have seen magnificent love for Indian cinema in the Netherlands when my film 'Black' was screened there," said Amitabh Bachchan, the brand ambassador of the IIFA awards.
"There is a phenomenal interest in Bollywood in that wonderful country and so I'm personally delighted that the awards are going to be hosted there."
Bachchan said he was thrilled that a Vidhu Vinod Chopra film was being premiered at the IIFA awards. "I have the greatest regards for Vidhu Vinod Chopra and Pardeep Sarkar who is one of our most veteran technicians.
"Many years ago, Vidhu Vinod Chopra came to me and said that he wanted to direct me in a film and now finally after 30 years it is happening, I am doing his film 'Yagna'."
A host of Bollywood stars would descend on Amsterdam for the awards, whose tagline this year is 'I Amsterdam', including Salman Khan, Abhishek Bachchan, Aishwarya Rai, Shahid Kapur, Kareena Kapoor, Lara Dutta and Esha Deol.
Amsterdam would swing to Bollywood during the awards with everything from mega parties to giant painting exhibitions based on Hindi cinema that would be showcased at the festival.