diff --git a/CHANGELOG.md b/CHANGELOG.md
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,9 @@
 # Changelog
 All notable changes to this project will be documented in this file.
 
+## 0.2.2.1 (released 2020-05-08)
+- Minor improves in generated `.headroom.config` in `init` mode
+
 ## 0.2.2.0 (released 2020-05-04)
 - [#45] Add `-c|--check-headers` command line option
 - Bump _LTS Haskell_ to `15.11`
diff --git a/embedded/config-file.yaml b/embedded/config-file.yaml
--- a/embedded/config-file.yaml
+++ b/embedded/config-file.yaml
@@ -16,6 +16,12 @@
 ## times for more than one path).
 source-paths: []
 
+## Allows to define list of regular expressions that will be matched against
+## 'source-paths' and such paths will be excluded from processing. Same as
+## '-e|--excluded-path=REGEX' command line argument (can be used multiple times
+## for more than one path).
+excluded-paths: []
+
 ## Paths to template files (either files or directories),
 ## same as '-t|--template-path=PATH' command line argument (can be used multiple
 ## times for more than one path).
diff --git a/embedded/license/bsd3/c.mustache b/embedded/license/bsd3/c.mustache
--- a/embedded/license/bsd3/c.mustache
+++ b/embedded/license/bsd3/c.mustache
@@ -11,7 +11,7 @@
  * 2. Redistributions in binary form must reproduce the above copyright
  *    notice, this list of conditions and the following disclaimer in the
  *    documentation and/or other materials provided with the distribution.
- * 3. Neither the name of mosquitto nor the names of its
+ * 3. Neither the name of copyright holder nor the names of its
  *    contributors may be used to endorse or promote products derived from
  *    this software without specific prior written permission.
  *
diff --git a/embedded/license/bsd3/cpp.mustache b/embedded/license/bsd3/cpp.mustache
--- a/embedded/license/bsd3/cpp.mustache
+++ b/embedded/license/bsd3/cpp.mustache
@@ -11,7 +11,7 @@
  * 2. Redistributions in binary form must reproduce the above copyright
  *    notice, this list of conditions and the following disclaimer in the
  *    documentation and/or other materials provided with the distribution.
- * 3. Neither the name of mosquitto nor the names of its
+ * 3. Neither the name of copyright holder nor the names of its
  *    contributors may be used to endorse or promote products derived from
  *    this software without specific prior written permission.
  *
diff --git a/embedded/license/bsd3/css.mustache b/embedded/license/bsd3/css.mustache
--- a/embedded/license/bsd3/css.mustache
+++ b/embedded/license/bsd3/css.mustache
@@ -11,7 +11,7 @@
  * 2. Redistributions in binary form must reproduce the above copyright
  *    notice, this list of conditions and the following disclaimer in the
  *    documentation and/or other materials provided with the distribution.
- * 3. Neither the name of mosquitto nor the names of its
+ * 3. Neither the name of copyright holder nor the names of its
  *    contributors may be used to endorse or promote products derived from
  *    this software without specific prior written permission.
  *
diff --git a/embedded/license/bsd3/html.mustache b/embedded/license/bsd3/html.mustache
--- a/embedded/license/bsd3/html.mustache
+++ b/embedded/license/bsd3/html.mustache
@@ -11,7 +11,7 @@
   2. Redistributions in binary form must reproduce the above copyright
      notice, this list of conditions and the following disclaimer in the
      documentation and/or other materials provided with the distribution.
-  3. Neither the name of mosquitto nor the names of its
+  3. Neither the name of copyright holder nor the names of its
      contributors may be used to endorse or promote products derived from
      this software without specific prior written permission.
   
diff --git a/embedded/license/bsd3/java.mustache b/embedded/license/bsd3/java.mustache
--- a/embedded/license/bsd3/java.mustache
+++ b/embedded/license/bsd3/java.mustache
@@ -11,7 +11,7 @@
  * 2. Redistributions in binary form must reproduce the above copyright
  *    notice, this list of conditions and the following disclaimer in the
  *    documentation and/or other materials provided with the distribution.
- * 3. Neither the name of mosquitto nor the names of its
+ * 3. Neither the name of copyright holder nor the names of its
  *    contributors may be used to endorse or promote products derived from
  *    this software without specific prior written permission.
  *
diff --git a/embedded/license/bsd3/js.mustache b/embedded/license/bsd3/js.mustache
--- a/embedded/license/bsd3/js.mustache
+++ b/embedded/license/bsd3/js.mustache
@@ -11,7 +11,7 @@
  * 2. Redistributions in binary form must reproduce the above copyright
  *    notice, this list of conditions and the following disclaimer in the
  *    documentation and/or other materials provided with the distribution.
- * 3. Neither the name of mosquitto nor the names of its
+ * 3. Neither the name of copyright holder nor the names of its
  *    contributors may be used to endorse or promote products derived from
  *    this software without specific prior written permission.
  *
diff --git a/embedded/license/bsd3/rust.mustache b/embedded/license/bsd3/rust.mustache
--- a/embedded/license/bsd3/rust.mustache
+++ b/embedded/license/bsd3/rust.mustache
@@ -10,7 +10,7 @@
  * 2. Redistributions in binary form must reproduce the above copyright
  *    notice, this list of conditions and the following disclaimer in the
  *    documentation and/or other materials provided with the distribution.
- * 3. Neither the name of mosquitto nor the names of its
+ * 3. Neither the name of copyright holder nor the names of its
  *    contributors may be used to endorse or promote products derived from
  *    this software without specific prior written permission.
  *
diff --git a/embedded/license/bsd3/scala.mustache b/embedded/license/bsd3/scala.mustache
--- a/embedded/license/bsd3/scala.mustache
+++ b/embedded/license/bsd3/scala.mustache
@@ -11,7 +11,7 @@
  * 2. Redistributions in binary form must reproduce the above copyright
  *    notice, this list of conditions and the following disclaimer in the
  *    documentation and/or other materials provided with the distribution.
- * 3. Neither the name of mosquitto nor the names of its
+ * 3. Neither the name of copyright holder nor the names of its
  *    contributors may be used to endorse or promote products derived from
  *    this software without specific prior written permission.
  *
diff --git a/embedded/license/bsd3/shell.mustache b/embedded/license/bsd3/shell.mustache
--- a/embedded/license/bsd3/shell.mustache
+++ b/embedded/license/bsd3/shell.mustache
@@ -10,7 +10,7 @@
 # 2. Redistributions in binary form must reproduce the above copyright
 #    notice, this list of conditions and the following disclaimer in the
 #    documentation and/or other materials provided with the distribution.
-# 3. Neither the name of mosquitto nor the names of its
+# 3. Neither the name of copyright holder nor the names of its
 #    contributors may be used to endorse or promote products derived from
 #    this software without specific prior written permission.
 #
diff --git a/headroom.cabal b/headroom.cabal
--- a/headroom.cabal
+++ b/headroom.cabal
@@ -1,6 +1,6 @@
 cabal-version: 2.2
 name: headroom
-version: 0.2.2.0
+version: 0.2.2.1
 license: BSD-3-Clause
 license-file: LICENSE
 copyright: Copyright (c) 2019-2020 Vaclav Svejcar
@@ -151,7 +151,6 @@
         optparse-applicative >=0.15.1.0,
         pcre-light >=0.4.1.0,
         rio >=0.1.15.1,
-        template-haskell >=2.15.0.0,
         time >=1.9.3,
         yaml >=0.11.3.0
 
diff --git a/src/Headroom/Command/Init.hs b/src/Headroom/Command/Init.hs
--- a/src/Headroom/Command/Init.hs
+++ b/src/Headroom/Command/Init.hs
@@ -3,6 +3,7 @@
 {-# LANGUAGE MultiParamTypeClasses #-}
 {-# LANGUAGE NoImplicitPrelude     #-}
 {-# LANGUAGE OverloadedStrings     #-}
+{-# LANGUAGE RecordWildCards       #-}
 {-# LANGUAGE TupleSections         #-}
 {-# LANGUAGE TypeApplications      #-}
 
@@ -42,10 +43,10 @@
                                                 , doesFileExist
                                                 , fileExtension
                                                 , findFiles
-                                                , getCurrentDirectory
                                                 )
 import           Headroom.FileType              ( fileTypeByExt )
 import           Headroom.Meta                  ( TemplateType )
+import           Headroom.Serialization         ( prettyPrintYAML )
 import           Headroom.Template              ( Template(..) )
 import           Headroom.Types                 ( ApplicationError(..)
                                                 , CommandInitError(..)
@@ -61,6 +62,7 @@
 import qualified RIO.Char                      as C
 import           RIO.FilePath                   ( (</>) )
 import qualified RIO.List                      as L
+import qualified RIO.Map                       as M
 import qualified RIO.NonEmpty                  as NE
 import qualified RIO.Text                      as T
 import qualified RIO.Text.Partial              as TP
@@ -76,8 +78,7 @@
 
 -- | Paths to various locations of file system.
 data Paths = Paths
-  { pCurrentDir   :: !FilePath
-  , pConfigFile   :: !FilePath
+  { pConfigFile   :: !FilePath
   , pTemplatesDir :: !FilePath
   }
 
@@ -94,9 +95,7 @@
 
 env' :: CommandInitOptions -> LogFunc -> IO Env
 env' opts logFunc = do
-  currentDir <- getCurrentDirectory
-  let paths = Paths { pCurrentDir   = currentDir
-                    , pConfigFile   = ".headroom.yaml"
+  let paths = Paths { pConfigFile   = ".headroom.yaml"
                     , pTemplatesDir = "headroom-templates"
                     }
   pure $ Env { envLogFunc = logFunc, envInitOptions = opts, envPaths = paths }
@@ -138,10 +137,9 @@
                 => [FileType]
                 -> RIO env ()
 createTemplates fileTypes = do
-  opts  <- viewL
-  paths <- viewL
-  let templatesDir = pCurrentDir paths </> pTemplatesDir paths
-  mapM_ (\(p, lf) -> createTemplate templatesDir lf p)
+  opts       <- viewL
+  Paths {..} <- viewL
+  mapM_ (\(p, lf) -> createTemplate pTemplatesDir lf p)
         (zipWithProgress $ fmap (cioLicenseType opts, ) fileTypes)
 
 createTemplate :: (HasLogFunc env)
@@ -161,36 +159,32 @@
 createConfigFile :: (Has CommandInitOptions env, HasLogFunc env, Has Paths env)
                  => RIO env ()
 createConfigFile = do
-  opts  <- viewL
-  paths <- viewL
-  let filePath = pCurrentDir paths </> pConfigFile paths
-  logInfo $ "Creating YAML config file in " <> fromString filePath
-  writeFileUtf8 filePath (configuration opts paths)
+  opts         <- viewL
+  p@Paths {..} <- viewL
+  logInfo $ "Creating YAML config file in " <> fromString pConfigFile
+  writeFileUtf8 pConfigFile (configuration opts p)
  where
   configuration opts paths =
     let withSourcePaths = TP.replace
           "source-paths: []"
-          ("source-paths: " <> toYamlList (T.pack <$> cioSourcePaths opts))
-          configFileStub
+          (toYamlList "source-paths" $ cioSourcePaths opts)
         withTemplatePaths = TP.replace
           "template-paths: []"
-          ("template-paths: " <> toYamlList [T.pack $ pTemplatesDir paths])
-          withSourcePaths
-    in  withTemplatePaths
-  toYamlList items = mconcat
-    ["[ ", T.intercalate ", " (fmap (\i -> "\"" <> i <> "\"") items), " ]"]
+          (toYamlList "template-paths" [pTemplatesDir paths])
+    in  withTemplatePaths . withSourcePaths $ configFileStub
+  toYamlList field list =
+    T.stripEnd . prettyPrintYAML $ M.fromList [(field :: Text, list)]
 
 -- | Checks whether application config file already exists.
 doesAppConfigExist :: (HasLogFunc env, Has Paths env) => RIO env Bool
 doesAppConfigExist = do
-  paths <- viewL
+  Paths {..} <- viewL
   logInfo "Verifying that there's no existing Headroom configuration..."
-  doesFileExist $ pCurrentDir paths </> pConfigFile paths
+  doesFileExist pConfigFile
 
 -- | Creates directory for template files.
 makeTemplatesDir :: (HasLogFunc env, Has Paths env) => RIO env ()
 makeTemplatesDir = do
-  paths <- viewL
-  let templatesDir = pCurrentDir paths </> pTemplatesDir paths
-  logInfo $ "Creating directory for templates in " <> fromString templatesDir
-  createDirectory templatesDir
+  Paths {..} <- viewL
+  logInfo $ "Creating directory for templates in " <> fromString pTemplatesDir
+  createDirectory pTemplatesDir
diff --git a/test/Headroom/Command/InitSpec.hs b/test/Headroom/Command/InitSpec.hs
--- a/test/Headroom/Command/InitSpec.hs
+++ b/test/Headroom/Command/InitSpec.hs
@@ -36,7 +36,6 @@
     { cioSourcePaths = ["test-data" </> "test-traverse"]
     , cioLicenseType = BSD3
     }
-  paths = Paths { pCurrentDir   = "."
-                , pConfigFile   = "test-data" </> "configs" </> "full.yaml"
+  paths = Paths { pConfigFile   = "test-data" </> "configs" </> "full.yaml"
                 , pTemplatesDir = "headroom-templates"
                 }
diff --git a/test/Headroom/SerializationSpec.hs b/test/Headroom/SerializationSpec.hs
--- a/test/Headroom/SerializationSpec.hs
+++ b/test/Headroom/SerializationSpec.hs
@@ -7,6 +7,7 @@
 
 import           Headroom.Serialization
 import           RIO
+import qualified RIO.Map                       as M
 import           Test.Hspec
 
 
@@ -19,8 +20,16 @@
     it "removes prefix and keeps case for 'prURLField'" $ do
       dropFieldPrefix "prURLField" `shouldBe` "URLField"
 
+
   describe "symbolCase" $ do
     it "replaces camel cased string into symbol cased" $ do
       let input    = "camelCasedValue"
           expected = "camel-cased-value"
       symbolCase '-' input `shouldBe` expected
+
+
+  describe "prettyPrintYAML" $ do
+    it "pretty prints YAML" $ do
+      let input    = M.fromList [("foo" :: Text, ["bar"] :: [Text])]
+          expected = "foo:\n- bar\n"
+      prettyPrintYAML input `shouldBe` expected