The five-year Livelihood Recovery for Peace project (LRP) is implemented in all the 271 VDCs of the three Central Tarai (southern plains) districts of Mahottari, Sarlahi and Rautahat of Nepal since late 2009 where poverty, conflict, exclusion, gender-based violence and natural disasters have hindered development. The project interventions were initiated using guideline and procedures focussing people centred participatory methods for sustainable livelihoods towards peace. A total of 20837 socially empowered members from 904 CG have received the micro capital grant of NRs 9,000 to carry out economic business of on farm and off farm type IGAs. At a time the poor are frantically looking for a way out to come out of poverty, UNDP's micro capital grant has created livelihood options for the poor and contributed to the socio-economic empowerment of the disadvantaged and poor communities. All these beneficiaries have hopes of making profits and improve their business in the future. The beneficiaries have hopes of scaling up their business and earn money to improve their living conditions. It is encouraging to note that 23% of all micro capital recipients or 4000 individuals who received grants in previous years between 2011 and 2012 have turned to self-employed entrepreneur. Small but meaningful opportunities created at the community level have enhanced the economic momentum for the poor where they need not necessarily go out for a daily wage. Animal and trading and service business had more monthly income among off-farm type and vegetable farming had highest seasonal income. Although, low seasonal income from operating cattle rearing business, had highest current value. There are 30 agriculture cooperatives registered in 3 districts for institutional development of poor and vulnerable community.