"This was an old demand of Delhi. We welcome the decision and thank the Centre. Till now, before the elections people were promised regularisation," the Chief Minister told the media.
The Union Cabinet on Wednesday approved the regularisation of unauthorized colonies in Delhi.
The Cabinet said that a bill for it will be brought in the next session of Parliament starting next month.
Kejriwal said 1,797 colonies will be regularised.
He said after coming to power, the AAP started working on the same and sent a proposal to the Centre on 12 November 2015.
"In July, the Centre sent us a draft and within days we sent back our suggestions. We accepted most of the draft," Kejriwal said.
He said this was a very long struggle of the people of Delhi as well as the government.
"We are yet to get the details of the proposal. We want that the process be initiated immediately," Kejriwal said.
He said his government has spent Rs 6,000 crore for development in these colonies.
He said if the BJP wants, it can take the credit for the work but the people should get the registries in their hand.
The Centre said the decision will benefit more than 40 lakh residents of unauthorized colonies spread over around 175 sq kms, "as development or redevelopment can now take place in these colonies resulting in a clean, secure and healthy living environment".
( With inputs from IANS )