Livelihood support options in rural India are limited. This leads to migration, unemployment, poverty and exploitation of rural people. Fortunately, in Bundelkhand region, Palas (Butea monosperma) naturally regenerates on wastelands, field bunds and extensively used as firewood, leaf mulch and for gum extraction. The species is a known host of lac insect (strain Rangmi). Therefore, attempts were made to introduce lac cultivation in the region which was successful but insect could not be perpetuated for regular inoculation. Gum extraction practice common in the region from B. monosperma is documented in this paper. Efforts were also made to derive livelihood for rural poor through institution building. Out of 4 SHGs constituted in study area, only one SHG could succeed in its endeavour. This, Maa Shitla SHG of Garhkundar constituted of 10 female members from S.C. community. During their journey from 2006–07 to till date, they have accrued assets and cash worth 74,000 plus. They meet regularly at weekly interval and contribute 10 each member, discuss business and maintain bank account. They are successfully running inter-personal loaning to meet group demand and enrich SHG, at affordable rate of interest. They started incense stick making as group activity but could not continue due to low returns. Further, they purchased one diesel pump to rent out which they disposed off after making small profit due to management difficulty. In the year 2008, when there was heavy downpour, the group and one individual attempted aquaculture in two check dams but incurred loss due to number of reasons and gave up the activity in subsequent years. In 2009, they started tent house business as group activity and successfully running and making profit out of it. They are strengthening the activity as part time livelihood support option on regular basis. This venture appears to be sustainable for this group because no such tent house facility is available in nearby villages. There is need to find out such viable ventures which can be promoted as livelihood support options in rural India where job opportunities are less.