The government also announced Rs 50,000 to the injured.
The announcement was made in the Legislative Assembly by the Chief Minister Prithviraj Chavan.
Meanwhile, PWD Minister Chhagan Bhujbal informed the legislature that the death toll in the accident is 37 and the number of injured is 12.
"According to the preliminary information, the bus driver apparently lost control over the vehicle," Bhujbal said.
Meanwhile, Maharashtra Governor K Sankaranarayanan expressed grief over the loss of lives in the accident.
"I convey my heartfelt condolences to those who lost their near and dear ones in the accident and wish speedy recovery to the injured," he said.