The government has instituted the award to commemorate 100 years of Indian cinema.
The 77-year-old actress, known for her memorable performance in films like 'Guide' and 'Sahib Bibi Aur Ghulam', will be given the honour in recognition of her unparalleled contribution to Indian cinema on the opening day of the 10-day festival.
Waheeda was selected unanimously by a five-member jury. The award carries a citation, a certificate, a medal (silver peacock), a shawl and a cash prize of Rs 10 lakh.
Waheeda was awarded the Padma Shri in 1972 and the Padma Bhushan in 2011.
Information and broadcasting minister Manish Tewari announced the decision on Sunday saying the award has been instituted to mark 100 years of Indian cinema. "Congratulations to Waheeda Rehman ji for being conferred the inaugural Centenary Award for the Indian Film Personality of the Year-2013," he tweeted.
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