The award has been constituted for felicitation of senior vocal artists and their contribution over a period of time.
The award consists of Rs 5 lakh in cash and a citation, an official communication from the Maharashtra government said.
The award is constituted by state cultural ministry.
Born on March 15, 1943, Pagdhare received her first lessons from father Janardan Chamare and subsequently from R D Bendre.
She also learnt ghazals, bhajans and thumari and performed several compositions.
Itani Shakti Hume De Na Data... a song in the movie Ankush (1986) is one of the most popular songs sung by her.