Selected out of a two stage all-India competition, the project has been built on the foothills of the mountains which enshrine the caves of Mata Vaishno Devi, a popular hindu pilgrimage destination. The University established in 1999 receives funding from Shri Mata Vaishno Devi Shrine Board, an autonomous Board set up in August 1986 under the provisions of The Jammu and Kashmir Shri Mata Vaishno Devi Shrine Act, 1986 of J&K State Legislature. The University also gets funds from UGC (University Grants Commission).