The award, including the trophy and Rs. one lakh, was presented to the ace shooter by Navy Chief Admiral DK Joshi, the release added.
"I am honoured to have been given such a prestigious award. It makes me really happy that my efforts are now being applauded and appreciated by the Services," Vijay Kumar said.
Vijay Kumar won a silver medal at the July-August London Games in the individual 25 metre rapid fire pistol.
The current world No. 3 had earlier won three gold medals and one silver medal at the 2010 Commonwealth Games held here.
Meanwhile, the Himachal Pradesh shooter will be flying to Bangkok on October 22 to participate in the prestigious ISSF World Cup Finals.