The aim of the scheme is to set up homes for children who are living on the streets and destitute and have no home. For rendering services for the welfare of the children, voluntary organization have a significant role to play so that children can have education, health care, vocational training & recreation facilities. The voluntary organization have been requested to identify the area of the work so that grants can be provided to them.

Under the Juvenile Justice Act, the observation homes for the delinquents can be run by the voluntary organizations or by the State Govt.. as the existing observation homes are over-crowded & the classifications, age group wise are not possible, which are leading to serious administrative management problems. Hence, no grants have been released so far. The scheme has provision of matching share for setting up of the 20 institutions in the 10th Five Year Plan 2002-07.