PSLV-C2 would carry the Indian remote sensing satellite IRS-P4 (OCEANSAT-1) as the primary payload, a South Korean micro satellite `Kitsat' and a German micro satellite `Tubsat' as piggybacks, DoS secretary Dr K Kasturirangan told reporters here.

According to officials of the Indian Space Research Organisation (ISRO), the event would also signify the start of marketing of Indian launch services.

Kasturirangan, who is also the ISRO chairman, said integration and final checks with regard to IRS-P4, meant for observation of oceans, were being carried out and it would be shipped to Sriharikota on April 30. The launch window would be opened on May 25 and the launch would take place any day after that.

Some 10 to12 universities had lined up to carry out research on oceanography from data of IRS-P4, he said.

He said Insat-3B would be launched by Ariane Space from Kourou in French Guyana during September-October this year.

ISRO officials said the launch of Insat-3B had been advanced to precede that of Insat-3A to quickly augment the extended C-band capacity of insat system. Kasturirangan strongly denied reports that Insat-2E, launched successfully earlier this month, was not Y2K compliant

"we (ISRO) are a responsible organisation... We cannot afford that. All the systems are Y2K compliant'.

Conny Kullman, director general and CEO of International Telecommunication Satellite Organisation (Intelsat), to which the DoS has leased nine transponders on board Insat-2E, who was sitting next to Kasturirangan, chipped in to say that ISRO had certified that Insat-2E was Y2K compliant.

Earlier, Kasturirangan formally handed over the equivalent of 11 mhz band width C-band capacity on board Insat-2E to Kullman at afunction here.

According to ISRO, the lease is for a period of ten years with an option to extend by two more years. In turn, Intelsat will provide lease charges periodically to DoS amounting to 10 million dollars per year. Kullman handed over a cheque for 0.68 million US dollars on the occasion.

Kasturirangan said the domestic demand would go up to 135 transponders by the year 2002-2003 and ISRO was gearing up to meet it. Insat-1D and Insat-2A were being phased out, he said.

He indicated that while bulk of the transponder capacity on future insat satellites would continue to go to Indian customers like the Department of Telecommunications and Department of Information and Broadcasting, some 35 per cent to 40 per cent would be given to other users.

In his address, Kullman said it was for the first time that Intelsat, a consortium of 143 countries, was sharing capacity with another operator.

He said India was a strategically important market for Intelsat. Its officials would hold talks with ISROregarding further cooperation.

Telecom secretary Anil Kumar admitted to `capacity constraints' and said that the country's financial sector was facing shortage of extended C-band capacity. He said ISRO was holding talks on leasing capacity from foreign satellites.

Responding to this, Kasturirangan said Insat-3B, scheduled for launch during September-October this year, would have 12 extended C-band transponders and three Ku band transponders. "The shortage will be over by next year or so," he said.

Speaking on the occasion, acting chairman and managing director of VSNL, Amitabh Kumar, said VSNL would establish 10 more earth stations in the country this year. The one in Chennai would be commissioned next month, he added.

Secretary in the Department of Science and Technology V Ramamurthy and Insat programme Director S Rangarajan and senior Intelsat officials were among those present.

Ramamurthy later said ISRO was building a weather radar for the Meteorological Department and it would beoperationalised within the next six months. Some Rs 9 crore had already been spent on the project, he added.

ISRO said the agreement between DoS and Intelsat regarding leasing of transponders was aimed at mutual benefit. As the leased transponders would become part of Intelsat space segment, companies outside India could also lease these transponders.

With this strategic alliance with Intelsat, Insat would play a siginificant role in the fast changing satellite market in the Asia-Pacific region, it said.

Intelsat would start using the leased transponders in the next few weeks after conducting necessary interface tests between the satellite and the various earth stations, it was stated.

Taking into account ISRO's competence and capability exhibited through the design, manufacture and testing of Insat-2E, Intelsat has expressed its desire to explore the possibility of acquiring additional capacity in insat's future satellite in the next four to five years.

"The details will be worked out in the nextfew months by technical experts from both sides," ISRO said.

ISRO officials said Insat-3B would weigh about 2000 kg with a dry mass of 950 kg. It would generate about 1,650 w of power from a double sided solar array configuration.

IRS-P4 would carry sophisticated instruments like ocean colour monitor and multi-frequency scanning microwave radiometer which will provide valuable information on ocean biological parameters, sea surface temperature, atmospheric water vapour content and sea surface winds.