The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched in 2005 to address the growing challenges of urbanisation by improving infrastructure, governance and the quality of life in cities. This chapter assesses all the four sub-missions that fall under the JNNURM that is to say UIG (Urban Infrastructure and Governance) and BSUP (Basic Services for the Urban Poor) for big cities and UIDSSMT (Urban Infrastructure Development Scheme for Small and Medium Towns) and IHSDP (Integrated Housing and Slum Development Program) for small and medium towns. Being the largest and only scheme directed at urban rejuvenation, it merits research to understand the course of urban policy in India. Within the policy framework, a bias towards developing big cities at the cost of small and medium towns is an important question for any subsequent policy on urban development. The analysis ascertains that a larger proportion of the urban population resides in the small and medium towns that are eligible for the UIDSSMT and IHSDP schemes rather than in the big cities, which can access funding from the UIG and BSUP sub-missions. However, this larger share of the urban population that falls under UIDSSMT and IHSDP has received a much smaller share of central assistance as compared to the big city UIG and BSUP schemes. The chapter therefore discusses the rise in urban poverty, lack of capacity building and poor performance in the delivery of basic services in small towns in India, arguing that central funds could have been more useful in these small towns than in big cities. The chapter finally attempts to emphasise the benefits of small town development that can help neighbouring villages access urban amenities, employment and eventually aid their transformation into urban centres.