[9] The central government approved a Viability Gap Funding (VGF) of 20% for the construction of Kushinagar Airport in 2013.

The State Government selected IL&FS Infrastructure Development Company Limited as project consultants.

[6] Despite several attempts to reduce the cost and the size of the project, the government could not convince private payers about its viability.

In May 2015, the state government decided to take the support of Airport Authority of India to move ahead with the project.

[18] On 20 October 2021, PM Modi officially inaugurated the airport during Abhidhamma Day celebrations at Kushinagar, stating that it would boost the aviation sector and help increase international tourism from Buddhist pilgrims around the world.