70-year-old Baijal, a 1969 batch IAS officer, had served as Union Home Secretary under the Atal Bihari Vajpayee government besides holding key positions in other ministries.
The President accepted the resignation of Jung and also ordered for appointment of Baijal, who will be the 21st Lt Governor of the national capital.
News of Baijal's appointment comes a week after Delhi's former Lt. Governor Najeeb Jung suddenly resigned last Thursday, taking everyone by surprise.
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A 1969-batch IAS officer, Baijal held several eminent positions, including the vice-chairman of Delhi Development Authority and Union Home Secretary during the Atal Bihari Vajpayee government.
He retired in 2006 as Union Urban Development Secretary.