The event was attended by Prime Minister Modi along with several other dignitaries.
Speaking at the event, PM Modi said, "Atal Ji had a long political career, a large part of that career was spent in opposition. Yet, he continued raising issues of public interest and never ever deviated from his ideology".
Congress leader Ghulam Nabi Azad said, "Atal Bihari Vajpayee ji will be remembered because there was criticism in his words for opposition but in his heart, there was no anger against opposition".
The portrait had been prepared by the renowned artist Krishn Kanhai of Vrindavan in Uttar Pradesh.
The decision in this regard was taken unanimously on December 18, last year at a meeting of the parliament's portrait committee chaired by Lok Sabha Speaker Sumitra Mahajan.
Congress leader Mallikarjun Kharge, Deputy Speaker and AIADMK leader M. Thambi Durai, BJD`s Bhratruhari Mahtab, TMC`s Sudip Bondopadhyay, TRS` Jithendra Reddy, Shiv Sena`s Ananth Geete and BJP`s Satyanarayan Jatia had attended the meeting.
Vajpayee, a towering BJP leader, was the Prime Minister thrice – first for 13 days in 1996, then for 13 months from 1998 to 1999, and then from 1999 to 2004.