Maharashtra Chief Minister Prithviraj Chavan said the idea was suggested by the state during a meeting he had with Prime Minister Manmohan Singh.
Agriculture Minister Sharad Pawar and Deputy Chairman of Planning Commission Montek Singh Ahluwalia were also present at the meeting.
Chavan said the Planning Commission would hold talks with state government officials in the next few days.
The meeting with the Prime Minister came a day after Chavan and several of his cabinet colleagues met the Empowered Group of Ministers on drought chaired by Pawar.
The state government has sought central assistance to the tune of Rs 3,572 crore for tackling the drought in 123 talukas.
Chavan said a fund like the National Drought Mitigation Fund would help states like Maharashtra to tackle the drought situation more effectively.
He said the state government would also ask other states to press the Centre to create the fund. (more)