"Anyone volunteering to kill a nilgai will get Rs. 500 or more," said agriculture minister Anand Singh.
"Once finalised, the scheme will be sent for the Cabinet nod."
Nilgai comes ruins crops, especially pulses. The farmers complain regularly about the animal, the minister said.
The killing of nilgai is not prohibited in the state. But under forest laws, one has to obtain a licence in advance.
"Not many people come forward for licence due to procedural complications," said agriculture production commissioner, Alok Ranjan.
And despite a licence, people are often hauled up by police.
"UP, along with other states, had demanded that the Centre declare the nilgai a vermin species, but the Centre did not agree. So we are trying to simplify rules."