ISRO has announced plans for seven launch missions by March, including the first uncrewed mission for the Gaganyaan project and demonstrations of new satellite technologies.
Based on the broadcast visuals, a rocket expert said the failure appeared similar to the anomaly seen during the PSLV-C61 mission.
These upcoming launches carry added significance in light of setbacks suffered in recent years.
ISRO chairman announces plans for nine major launches by the end of the fiscal year, including the Blue Bird Block2 communication satellite for the US in collaboration with NASA.
The 2,268-kg GISAT-1 was originally slated to be launched from Sriharikota in Andhra Pradesh's Nellore district, about 100 kms north of Chennai, on March 5 last year but was postponed a day before the blast-off due to technical reasons.
The FAC found that the failure happened when the Geosynchronous Satellite Launch Vehicle rocket's cryogenic engine was to kick in to take the rocket forward.
Indian Space Research Organisation's second mission of the year to place an earth observation satellite by a GSLV rocket faced a setback as the mission could not be accomplished fully due to performance anomaly in the cryogenic stage of the rocket, the space agency said on Thursday.
'We have all the technologies available, but it should be converted to something that can be commercially viable.'
Out of its 47 operational satellites, India currently has six to eight satellites which are used entirely for military purposes.
The Chandrayaan-2 will conduct the next level of scientific studies on the Moon, writes T E Narasimhan.