Although the urbanisation process iswidely acknowledged to be associatedwith increasing levels of nationalproduction and higher levels of percapita GDP, poverty remains apersistent feature of urban life in India,both in terms of income andimmigrants’ living conditions.Economic growth in cities has beenfound to be insufficient to achievepoverty alleviation. Government actionhas focused on welfare and habitat improvements under various povertyalleviation programmes but has beenunable to make linkages between theseimprovements and increases in productivity and income for the urban poor. The weaknesses of current policies of poverty alleviation at the national level are due to certain misconceptions about poverty: firstly, that the poor represent a drain on the urban economy rather than a source of productivity; secondly, that poverty can be seen as a welfare question, with income-raisingobjectives left largely to national economic growth reports and assumed trickle-down development processes.Slum is the product of modern industrial civilization. One of the distressing manifestations of urbanization is the sporadic growth of slums. It is a social evil, which grows along withurbanization. Poverty and deficit of housing in rapidly growing cities are reasons of emergence of slums.The Slum Areas (Improvement and clearance) Act, 1956 defines slums as “areas where buildings(a) are in any respect unfit for human habitation;(b) are by reason of dilapidation, overcrowding,faulty arrangements and design of such buildings, narrowness or faulty arrangement of streets, lack of ventilation, light or sanitation facilities, or any combination of these factors are detrimental tosafety, health or morale.”The urban areas developing rapidly in the third world countries because of massive rural-urbanmigration and due to internal growth are different from their developed counterparts. This hugeurban growth, taking place at lower levels of development creates its own implications like acutehousing shortage, congestion, and proliferation of slums. This proliferation of slums and squattersin large cities of Third World has become central theme of discussion among policy makers, publicofficials and academics. For some, the urban crisis is synonymous with the ‘housing crises. Ampledata can be cited to prove the phenomenal growth of sub-standard dwellings in urban areas.Thishousing situation blatantly exposes the continuing indifference, neglect and lack of capacity of thegovernment in providing housing and other urban amenities to the poorest sections of the society.As the private sector involvement becomes questionable because of the profit motive of this sector,it necessitated civil society interventions in the form of Non Governmental organisations (NGOs),which are working amongst the urban poor and trying to alleviate their condition.