The mobilisation of urban poor households to form their own institutions is an important investment for an effective and sustainable poverty reduction programme as envisaged by the National Urban Livelihoods Mission. These institutions of the poor would partner with local self-governments, public service providers, banks, private sector and other mainstream institutions to facilitate delivery of social and economic services to the poor.

NULM envisages mobilisation of urban poor households into a three tiered structure with Self-Help Groups (SHGs) at the grass-root level, Area Level Federations (ALFs) at the slum / ward level and City-level Federations (CLFs) at the city-level: