India's Moon mission spacecraft 'Chandrayaan', which developed a technical snag following failure of one of its star sensors, is doing fine and a review meeting would be held in September, ISRO Chairman Madhavan Nair said on Wednesday.

India's feat to plant a national tricolour of the Moon on Friday was hailed by political leaders as an "inspirational and momentous" achievement for its space scientists to take the country to a leadership position in space probes.

India marked its presence on the Moon on Friday after a Moon Impact Probe, with the national tri-colour painted on it, successfully landed on the lunar surface after being detached from unmanned spacecraft Chandrayaan-1.

ISRO Chairman G Madhavan Nair on Thursday said India's second lunar mission, Chandrayaan-II, will be launched by 2012.

India's first unmanned spacecraft Chandrayaan-1 descended further into the lunar orbit on Tuesday following the third orbit-reduction manoeuvre, a top space official said in Bangalore.