The well-planned development of small cities can help disperse rural migration and prevent overcrowding of the metropolitan centres. JNNURM funds can make much more of a difference in these smaller towns. But the bulk of the allocation under JNNURM goes to the three mega cities of Mumbai, Delhi and Kolkata.
The UIDSSMT is the most important scheme from the Ministry of Urban Development targeting the small towns. This scheme is a component of Jawahar Lal Nehru National Urban Renewal Mission (JNNURM). On he link below a lots of data can be found on the way this scheme is implemented and the funds are shared between states and between towns.
See the link