The productivity of paddy field is affected due to the non application of organic manures in view of their high cost and limited availability. The new system of direct seeding rice with concurrent growing of green manure crops and its subsequent incorporation assumes significance in this contest. Field experiments were conducted at Agricultural Research Station, Mannuthy during 2004 -05 and 2005-06, to refine the technology of concurrent growing of green manure crops in direct seeded rice to improve its adaptability in farmer's fields so as to make rice cultivation more profitable through reduced production cost and enhanced productivity. Concurrent growing of a green manure crop in rice and its subsequent incorporation obviates the need for separate land, labour, inputs and time for a green manure crop. Concurrent growing of green manure crops in rice is very effective in supplying the required quantity of organic manures to dry seeded (12 t ha-1) and wet seeded (14 t ha-1) rice with minimum investment and this practice has the additional benefit of weed suppression (72-75%). System of growing of green manure crops in direct seeded rice could save 25 per cent N to the current season rice crop with 11-15 per cent yield increase compared to pure crop of rice. This new technology is ecologically adaptable, agronomically effective, economically rewarding and is a practical model for sustainable rice production system.