The decision was taken in a Cabinet meeting chaired by Chief Minister Arvind Kejriwal today.
A senior government official said that the scheme will cover those defence personnel dying in operations or war if his permanent address recorded at the time of joining service is in Delhi.
In April this year, the Arvind Kejriwal government had announced that it would provide compensation to the tune of Rs 1 crore to kin of uniformed services personnel killed on active duty.
"Financial help is not to support livelihood of martyr family but to pay homage to his courage and sacrifice," he had said.