In a major step, Isro on Saturday successfully tested the indigenous cryogenic engine to be used to propel the country's Geosynchronous Satellite Launch Vehicle.
The test was conducted at the Liquid Propulsion Systems Centre at Mahendragiri in Tamil Nadu's Tirunelveli district.
"The acceptance test of the indigenous cryogenic engine for the forthcoming GSLV-D5 flight was conducted successfully for 200 seconds at 17:10 hrs...," an Isro statement said.
"The performance of the engine was as predicted," it said.
The maiden flight test of the indigenous cryogenic stage onboard GSLV-D3 failed in May 2010 after it developed a snag and the rocket plunged into the sea minutes after lift-off.
Isro chief K Radhakrishnan had said last month that GSLV would undergo two more tests at the Mahendragiri facility.
He had also said Isro was planning a GSLV launch with Indian cryogenic engine during September-October.
Isro plans to fly two GSLV rockets at an interval of six months with the third one meant for the Chandrayaan-2 moon mission.