"The government has decided to develop road and drainage system in all unauthorised colonies within next two years," Kejriwal announced during a programme here.
The government's move will benefit lakhs of people living in such colonies who are considered a major vote bank of the Aam Aadmi Party, which is also gearing up for the Delhi municipal polls scheduled to be held next year.
There are about 1,750 unauthorised colonies which lack proper roads and drainage system.
The AAP government had in March this year allocated Rs 300 crore to Delhi State Industrial and Infrastructure Development Corporation Ltd (DSIIDC) for carrying out development works in unauthorised colonies.
"Works for constructing roads and drainage is being carried out on a war-footing and shall be completed in financial year 2016-17," Deputy Chief Minister Manish Sisodia had said while presenting the budget in the Assembly.