The Union cabinet on Wednesday approved a proposal to grant ownership rights to people living in unauthorised colonies in Delhi that could benefit 40 lakh people.

Union minister Prakash Javadekar made the announcement. The proposal is based on the recommendations of a committee, he said.

The announcement has come at a time Delhi is gearing up for Assembly elections.

Housing and urban affairs minister Hardeep Singh Puri said the Centre would bring a bill in the Winter session to give relief to the residents of the unauthorised colonies.

The decision 'is applicable to 1,797 identified unauthorised colonies' spread over 175 square km inhabited by people from lower income groups, he said. It does not apply to 69 affluent colonies identified by the Delhi Development Authority (DDA) including Sainik Farms, Mahendru Enclave and Anantram Dairy, Puri added.

In July, the Delhi government proposed a set of parameters to regularise the 1,797 colonies, which include charging one per cent cost of circle rate of land for up to 200 square metre plot from occupants besides a nominal penalty.