The union cabinet Tuesday recommended the dissolution of the Delhi assembly, informed sources said.
The decision was taken after leaders of the Bharatiya Janata party (BJP), Aam Aadmi Party (AAP) and the Congress Monday told Lt. Governor Najeeb Jung that they wanted elections to end months of political uncertainty.
The Delhi election threw up a fractured mandate, with the BJP refusing to form the government despite winning 31 seats.
The AAP came a close second with 28 seats, an electoral performance that stunned the nation, and formed a minority government with Congress backing.
But the government collapsed after 49 days as chief minister and AAP founder-leader Arvind Kejriwal resigned after failing to pass a Jan Lokpal Bill.
The national capital has been under President's rule since Feb 17.
Delhi BJP leader Satish Upadhyay expressed confidence about his party's victory.
"We will repeat our performance of Haryana and Maharashtra," he said.
The BJP, for the first time, has formed its own governments in Haryana and Maharashtra.
