India is amongst the most vulnerable drought prone countries in the world. Where a drought has been reported at least once in three year in the last five decade. In this paper ,an attempt has been made to provide a comprehensive idea of drought interpetation and correlation of various drought causative parameter. In the Tel basin covering a area of 296 km and lies between18º to 21º latitude and 83ºto 86º longitude. Odisha, India was selected study area. Tel basin was analyzed by the standardized index (SPI) and standardized precipitation evapotranspiration index (SPEI).The analyzed show that dought assessment by basin approach and the combination of drought indices can offer better understanding and better monitoring of drought condition.