70-year-old Baijal, who had served in a number of key positions at the Centre including as Union Home Secretary, was administered the oath of office and secrecy by Chief Justice of Delhi High Court G Rohini, 10 days after Najeeb Jung's abrupt resignation as the LG.
Baijal said addressing key challenges like women's safety, pollution, traffic congestion and strengthening infrastructure will be his priority areas.
On being asked about tussle between previous LG Jung and the city government on a range of issues including administrative control over the bureaucracy, Baijal said, "This is speculative. I don't know why and how the relationship will improve. We will sit and talk and then you will get to know."
Welcoming Baijal's appointment, Kejriwal said he was hopeful that under the new LG, governance in the national capital will see new momentum overcoming the past hurdles.
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"In the last few months, some works of Delhi government have come to a standstill. I hope that these works will be expedited," Kejriwal said at an event at Delhi Assembly complex.
Baijal said he will put his best efforts in improving law-and-order situation, women's safety, traffic congestion besides strengthening infrastructure and civic amenities in the city.
Baijal also thanked President Pranab Mukherjee and Prime
Minister Narendra Modi for giving him the responsibility.
He was actively associated with the designing and countrywide roll-out of Rs 60,000-crore Jawaharlal Nehru National Urban Renewal Mission (JNNURM) launched by the Manmohan Singh government.
Baijal had retired from service in 2006 as Urban Development Secretary. He had served as vice chairman of Delhi Development Authority and is known to be well versed with the city administration.
The former bureaucrat was also on the executive council of think-tank Vivekananda International Foundation, several of whose former members have been appointed to senior positions by the Modi government including NSA Doval.
The Shunglu committee has reportedly pointed out "irregularities" in some of the Kejriwal government's decisions.
His immediate task will also include appointing a new chairman of Delhi Electricity Regulatory Commission (DERC) which has been headless since November after the appointment of incumbent Krishna Saini was turned down by Jung.
Jung and the AAP dispensation had clashed over a range of issues including transfer and posting of bureaucrats, setting up of enquiry commissions and among others.
Jung had won the court battle as the Delhi High Court had stamped the primacy of Lt Governor in the affairs of Government of NCT.
However, AAP government had approached the Supreme Court challenging the high court verdict and during a recent hearing in the case, the apex court had said the elected government should have some powers.