The state government, in June 2016, had sanctioned a Rs 500-crore development plan for the 17th century fort, situated in neighbouring Raigad district.
Sambhaji Shahu Chhatrapati is a member of the former royal family of Kolhapur and king Shivaji's descendant.
He has been appointed to the Upper House of Parliament from the President's quota.
A government resolution issued last week announced the formation of a 17-member development authority for the fort.
The authority would approve expenditures as per a detailed project report for restoration drawn up by the Archaeological Survey of India, and monitor the work.
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