The vehicle blasted off into clear blue sky at 4:58 pm (1128 GMT) from the Sathish Dhawan Space Centre at Sriharikota in the southern state of Andhra Pradesh.

Scientists, headed by Krishnaswamy Kasturirangan, chairman of the Indian Space Research Organisation (ISRO), cheered as it lifted off.

The launch is a major milestone in India's march towards achieving self-reliance in launch capabilities, officials said.

The 49-metre (162-feet) tall, three-stage vehicle, weighed about 414 tonnes at lift-off.

It was carrying the India's heaviest satellite the GSAT-2 communication satellite which was placed into Geosynchronous Transfer Orbit -- synchronised with the spinning of the earth -- 998 seconds after lift-off, officials said.

The GSLV was last tested in April 2001 when a 1,540-kilogramme (3,388-pound) experimental satellite GSAT-1, was placed into orbit.

Prime Minister Atal Behari Vajpayee, who watched the launch live from his residence in New Delhi, said it was a landmark.

"It is a matter of great pride for all Indians. It is yet another landmark in space for India," he told parliament amid applause.

"It's a great day for us, it was a text-book flight," a beaming Kasturirangan said after the launch. "It was one of the most memorable moments and major milestones for the ISRO, a proud technological achievement.

"The launch went through according to plan. As one of my colleagues here said, it hit the bull's eye. Now we have a new satellite up there and this has given us a lot of confidence."

India is eyeing the lucrative satellite launch vehicle market and officials said the GSLV would be declared commercially operational after one more test flight within a year.

GSAT-2 was placed in an orbit of 180 kilometres (112 miles) at its perigee -- nearest point to earth -- and 36,000 kilometres (22,320 miles) at its apogee -- furthest point from earth.

Later, the satellite was positioned at 48 degrees east longitude in the geo-stationary orbit and its antenna and solar panels deployed.

GSAT-2 carried seven transponders and four piggyback experimental payloads including a solar X-ray spectrometer and a Coherent Radio Beacon Experiment to investigate the ionosphere.

The cryogenic engine used in the launch was from Russia, but Kasturirangan earlier said India was developing its own version.

The ISRO began its ambitious space programme with the "partially successful" launch of a Satellite Launch Vehicle on August 10, 1979.

In September last year it successfully launched a polar satellite launch vehicle capable of projecting a 1,000-1,200 kilogramme unit into space.

SPACE.WIRE