A field experiment was conducted during the wet season of 1998 and 1999 to study the effect of nitrogen application and methods of stand establishment on wet direct sown rice, Nidhi. Direct seeding using 8-row seeder recorded significantly higher grain yield (4.79 t ha^-1) over broadcast method seeding (3.9 t ha^-1). SPAD based nitrogen application at the reading 35 recorded mean maximum grain yield (5.40 t ha-1) highest net return (Rs. 6,470 ha^-1 was recorded in row seeding of stand establishment. Among nitrogen schedules, maximum net returns of Rs. 24,740/ha was recorded by SPAD based nitrogen application at the reading 35.