Functions:

1. Preparation of Master Plan for all urban areas of Assam (except Guwahati) to ensure their orderly growth and development.
2. To provide assistance to Urban Local Bodies and Development Authorities in the matter of urban planning and development
3. To act as Nodal Agency of the state of Assam for implementation of infrastructure development projects for Urban Development Sector under the following schemes:
1. Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT)
2. Integrated Housing & Slum Development Programme (IHSDP)
3. Infrastructure Projects under 10% allocation of Central Pool Fund provided for North East Region including Sikkim (10% Pool Fund)
4. Non-Lapsable Central Pool of Resources (NLCPR)
5. National Urban Information Systems (NUIS)
4. To provide any other support mandated to this Directorate by the Govt.of Assam

Objectives:

1. To formulate Master Plans to ensure sustainable urban development in notified urban areas
2. To provide financial and technical support to Urban Local Bodies for better urban management and service provision
3. To facilitate the proper implementation of urban services and infrastructure schemes mandated under this Directorate.
4. To facilitate planning process to make every town of the State slum-free with better hygiene & sanitation system to improve living environment.
5. To facilitate capacity building of officials and other employees for increasing efficiency to understand ever-changing policies and paradigms of urban governance
6. To monitor the growth of new urban areas in Assam and include them under planning procedures to ensure their efficient and orderly growth 
7. To facilitate ULB’s and Development Authorities to implement Master plan for orderly development of urban areas.