The precise location of the spacecraft in the lunar highlands has yet to be determined.
Sixty high school students who cleared an online space quiz last month were at the centre to witness the India's endeavour.
"The duration of manoeuvre was 1,738 seconds. With this, Chandrayaan-2 was successfully inserted into a Lunar orbit," Indian Space Research Organisation said.
Most components of technology demonstration, including the launch, orbital critical maneuvers, lander separation, de-boost and rough braking phase were successfully accomplished.
Minutes before making the announcement about losing communication with the 'Vikram' lander, ISRO Chairman K Sivan briefed the prime minister.
The mission has three modules - Orbiter, Lander (Vikram) and Rover (Pragyan)
'Till date, 90-95 per cent of the mission objectives have been accomplished' 'Future programmes will go as planned' After the moon landing mishap, K Sivan, chairman, Indian Space Research Organisation spoke to T E Narasimhan/Business Standard of the future and the mood among his scientists. Edited excerpts:
Vikram (with rover 'Pragyan' housed inside) is expected to touch down on the lunar surface on September 7, between 1.30 am and 2.30 am.
Indian Space Research Organisation's plan to soft land Chandrayaan-2's Vikram module on the Lunar surface did not go as per script in the early hours of Saturday, with the lander losing communication with ground stations during its final descent.
'When you look at it from the point of view of science, Chandrayaan 2 is a big success.'
"The panel's report is awaited. The committee has been given a guideline to prepare the mission before the end of next year," a senior ISRO official said. "There is a good launch window in November".
ISRO chairman K Sivan said the proposed soft-landing was going to be a 'terrifying' moment.
Sivan asserted that though Chandrayaan-2 did not go as per script, it will have no bearing with on the 'Gaganyaan' mission.
India's second mission to the moon will be launched on Monday at 2.43 pm after its initial launch on July 15 was called off owing to a "technical glitch."
The rover, Zhurong, named after a god of fire and war in Chinese mythology, landed at the pre-selected area in Utopia Planitia on Mars, the state-run Xinhua news agency reported.
Veteran space scientist G Madhavan Nair said on Tuesday that Indian Space Research Organisation's unsuccessful bid to soft land on the moon is nothing to be alarmed about, and it would only enable the space agency master complex missions going forward.
Two de-orbit manoeuvres of Vikram Lander, to bring it further down, have been planned to prepare for its landing in the south polar region of the moon.
"It is going to be the most complex mission ever undertaken by ISRO. It is going to take place between July 9 and 16, this year," Sivan said, addressing scientists from the Mission Control Centre.
Her comments came amid the ongoing war of words between India and Pakistan ever since India withdrew Jammu and Kashmir's special status and bifurcated it into two union territories on August 5.
He said the ISRO scientists have a very strong spirit of working and will not rest till the objective is met.
The six-wheeled solar-powered rover named Zhurong, resembling a blue butterfly and with a mass of 240 kg, slowly trundled off a ramp on the lander to hit the red, sandy soil of Mars, starting its journey to explore the fourth planet from the Sun.
Hours before Chandrayaan-2's 'Vikram' module's proposed soft landing on the Lunar surface, Indian Space Research Organisation chairman K Sivan said on Friday things are progressing as per plan for the much-awaited event.
The Chandrayaan-2 spacecraft is expected to reach the moon's orbit on August 20 and land on lunar surface on September 7.
India is the first country to attempt a soft-landing on south pole of Moon's surface.
The Chang'e-4 spacecraft scripted history on Thursday when it made the first-ever soft landing on the far side of the moon.
'I am extremely excited to be at the ISRO Centre in Bengaluru to witness the extraordinary moment in the history of India's space programme,' Modi tweeted earlier in the day.
ISRO chairman K Sivan said all activities related to the third lunar mission -- Chandrayaan-3 -- were going on smoothly but its launch may shift to next year.
Chandrayaan-2 will explore a region of the moon where no mission has ever set foot. The spacecraft consists of an orbiter, a lander, and a rover together referred to as "composite body".
'The unflappable temperament and nerves of steel under extreme pressure -- essential ingredients in space research -- were on full display in the rows occupied by the scientists still engrossed in their monitor screens,' says Minnie Vaid, author of Those Magnificent Women And Their Flying Machines, ISRO's Mission to Mars.
All spacecraft parameters are normal, the Bengaluru headquartered space agency said after the maneuver on the spacecraft.
There will be two more orbit manoeuvres to make the spacecraft enter into its final orbit passing over the lunar poles at a distance of about 100 km from the Moon's surface.
All spacecraft parameters are normal, the Bengaluru headquartered space agency said after the maneuver.
Chandrayaan-2 was launched on July 22, 2019 and inserted into the lunar orbit on August 20, exactly one year ago.
Nervous and anxious for sure but the city-headquartered space agency is cautiously optimistic of "Vikram" module's soft-landing on the Lunar surface planned in the early hours of Saturday.
According to ISRO officials, Earth bound orbit is a phase during which the spacecraft will remain in the Earth's sphere of influence.
Addressing the scientists hours after ISRO announced that it had lost communication with the lander, he also said that the country's determination to land on the moon has become even stronger.
China's first moon rover is back to work after a "nap" and has succeeded in sending back the first images of the national flags on itself and the lander, space authorities said on Sunday.
The Rs 978 crore mission, which has been rescheduled for Monday after scientists corrected the glitch in the rocket, will be launched at 2.43 p.m from the second launchpad at Satish Dhawan Space Centre, over 100 km from Chennai.
As NASA's Perseverance rover landed on Mars to look for signs of past life, ISRO chief K Sivan said India's next mission to the Red Planet is likely to be an orbiter.
'There's nothing like failure in science, we experiment & we gain'