Bai will be the 8th cultural figure to receive the coveted honour, which has been Instituted by Bhubaneswar-based cultural Organisation Kalingayana Touryatrikam.
The Award is presented annually to a nationally acclaimed artiste as a tribute to "Natya Shastra" creator sage Bharatmuni.
Bai has been chosen for this award for her contribution to project, propagate, promote and popularize Indian folk music across the globe.
Previous awardees include Thankamani Kutty, Pandit Birju Mahara, Pandit Jasraj, Sj Ratan Thiyam, Hema Malini, Hariprasad Chaurasia and Raghunath Mohapatra.
Bai will be presented the award on the closing day of the two-day festival on December 16.
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