Rapid urbanization has resulted in construction of office complexes, road pavements and high-rise apartment buildings, which increases the paved surfaces. This increases the runoff and therefore requires efficient urban drainage system to avoid the flash floods in cities. Planning ofurban storm water drainage system requires an integrated approach covering various types and size of drains such as primary, secondary and tertiary. The size, type and material of a drain is specified in design manual and depends upon duration of rainfall, intensity of rainfall and runoff. Generally, the drainage systems projects are being implemented with sewerage system. HUDCO has been promoting urban drainage projects as one of the important components of the basic services. These projects being non-remunerative, are linked to budgetary support and/or other than project revenues for repayment.

HUDCO has extended its financial assistance to project covering storm water drain in five towns of Odisha namely Bhubaneswar, Cuttack, Berhampur, Rourkela and Sambalpur, drainage for flood affected district in West Bengal, drainage networks in Jaipur and Lucknow etc. The implementing agencies for these projects are state PSUs, Centre PSUs, state level nodal department such as Public Health Engineering Department, Irrigation department etc.