Synopsis Self-help Groups (SHGs) are fast emerging as powerful tool of socio-economic empowerment of the poor in our rural areas. SHG is a small body formed by the people for meeting their specific objective, particularly credit. Next come NGOs who are a group of individuals without external controls having paid or unpaid workers. Panchayats play a major role in the administration of rural development. As panchayat got tremendous public support little need is in rural areas to opt for NGOs. Moreover, the clash of ideology between NGOs and panchayat and their preconceived idea about NGOs’ role hampered to a large extent the collaborative work as well as participation of NGOs in the development progress. But how situation is changing. Emphasis on NGOs for involving in the development work is being given from the state level. NGOs, Panchayati Raj and Self-Help Groups are being considered as ‘Motivators of Public’ and complementary to each other.