Chief Minister Devendra Fadnavis approved the sum while presiding over a meeting of the Mahasamadhi Centenary Celebration Committee held at Vidhan Bhavan here.
A part of the amount will be spent on upgrading infrastructure for devotees visiting the famous Saibaba temple at Shirdi in Ahmednagar district.
State Minister Ram Shinde and Leader of Opposition Radhakrishna Vikhe Patil of Congress were prominent among those present at the meeting.
Under the plan, additional facilities will be set up in two phases in the temple town where a large number of devotees are expected to visit on the occasion of completion of 100 years of 'mahasamadhi' of the revered saint.
The centenary of 'mahasamadhi' falls on October 18, 2018. Various programmes to mark the occasion will be held between October 1 this year to October 18, 2018.