The Aam Aadmi Party government has also decided to declare Grewal a martyr.
The decision was taken at a Cabinet meeting chaired by Chief Minister Arvind Kejriwal today at his official residence.
"The Delhi Cabinet has given its nod to provide Rs one crore compensation to family of Grewal. It has also decided to declare him a martyr," a senior official said.
The Delhi Chief Minister had been detained by police on Wednesday when he tried to meet Grewal's family.
"I want the people to take his fight forward. We will fight till our last breath and snatch OROP from the Centre. Our soldiers deserve what is their due," Kejriwal had told reporters here.
Under the AAP government's compensation policy, the families of martyrs, who are residents of Delhi, are given Rs one crore.
Kejriwal had asked Prime Minister Narendra Modi to implement the same across the country.
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