"Delighted. The fact that this kind of award exists shows that people still care for poetry.
"All poets incidentally are not mad as people think, though the madder the poet, the better the poetry. Regrettably I hail from the non-mad variety," Daruwalla said.
The award will be presented to him on November 16, the inaugural day of the 8th edition of the Tata Litfest, at the National Centre for the Performing Arts (NCPA) in Mumbai.
Born in Lahore, the poet has 18 books including collections of poetry, short stories and a novel to his credit.
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"The depth and eloquence with which Keki Daruwalla writes has enamored readers over generations, and his cultural footprint on our literature is undeniable.
"We are humbled to host such an eminent writer at the festival and are looking forward to hearing him speak," Anil Dharker, founder and director of Literature Live!, said.
Daruwalla published his first book of poems "Under Orion" in 1970.
His collection of poems titled, "The Keeper of the Dead" won him the Sahitya Akademi award in 1984.
"We are pleased to honour distinguished poetKeki Daruwalla at the Tata Literature Live! Mumbai Litfest this year for the significant contributions he has made in the field of poetry.
"We hope awards such as this serve as an encouragement for young poets to follow their passion for poetry, which is amongst the most beautiful and powerful forms of human expression," Harish Bhat of the Tata Sons, said.
Daruwalla, who is known for his bitter, satirical tone of poetic presentation, punctuated by poignant visual imagery, came out with his latest work, "Ancestral Affairs" in 2015.
Past recipients of the award include prolific poets including Gulzar (2016), Vikram Seth (2015) and Joy Goswami (2014).