While shops were earlier functioning in an odd-even format, all establishments will now be allowed to open. However, the CM said, they are only allowed between 10 am and 8 pm.
The Delhi Metro will continue to ply with 50% of the capacity.
"We will observe this for one week. If cases increase, stricter restrictions will have to be reimposed, otherwise, it will be continued," said Kejriwal.
The government has decided against reopening schools, colleges and other educational institutions. All gyms, spas, yoga institute, cinema theatres, multiplexes and banquet halls will also continue to remain shut.
Sports complexes, swimming pools and stadiums have not been given a green signal yet.
Any gathering for social, political, academic or entertainment reasons is also not allowed. Cultural and religious festivals continue to be prohibited as well.
A lockdown was imposed in the national capital on 19 April in view of the raging third wave of coronavirus. The restrictions were then extended multiple times until the gradual lifting of curbs started on 31 May.
In the first phase of the unlock process, construction and factory work was exempted from the lockdown.
Afterwards, the government allowed private offices, shops and malls to function from 7 June, albeit with some restrictions. Delhi Metro services were also resumed then.
Covid situation in Delhi
The national capital is reporting a dipping trend in the number of new infections and deaths.
According to a health bulletin on Saturday, Delhi saw 213 fresh Covid cases with 0.3% positivity rate in the last 24 hours. Also, the number of deaths came down to 25.
There were 414 Covid-19 cases with 0.5% positivity rate and 60 fatalities last Saturday.
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