A specific Sustainable Livelihood Index (SLI) of rural poor household was developed to identify potential households that are able to participate in poverty eradication programs or projects. The Sustainable Livelihood concept has multidimensional aspects. It includes livelihood asset, livelihood strategy, livelihood outcome, institutional involvement, and vulnerability context. Therefore, it is important to select parameters, which are representative indicators of all these sectors of human-life. With respect to assessing the ability and preparedness of the poor in receiving the development project, this study had identified 22 livelihood assets and outcomes indicators from the data set and were broadly grouped them under five groups of assets namely human, physical, natural, social, financial assets and two groups of livelihoods outcomes namely food security and health status (Table 1).