Micro-Enterprise Development programme (MEDEP) was started in 1998 to support achieve the Ninth Plan's objective of reducing poverty through the creation of micro-enterprise. MEDEP is in the third year of its implementation. It has been observed that MEDEP model is effective and cost efficient as well in poverty reduction through micro-enterprise development. Some government programmes have already adopted some elements of 'MEDEP Methodology'. However, MEDEP has yet to have a significant and broad policy impact. This has been the observation of the mid-term review mission as well. In order to verify this observation and evaluate the feasibility of replicating MEDEP model of poverty reduction through the development of micro-enterprises, this study was undertaken.