ISRO Chairman A S Kiran Kumar on Monday said the Indian space agency is planning to launch the first SAARC satellite by the end of next year.

Kumar said that there was a one-day meeting with SAARC nations on June 22 in which five representatives from each participating country, including Pakistan, took part.

"By December next year, we are expecting to launch this (SAARC) satellite," Kiran Kumar said. Spectrum finalisation for the satellite is being worked out, he said.

Proposing satellite diplomacy with a view to playing a key role in the development of the region, Prime Minister Narendra Modi last year had asked ISRO to develop a SAARC satellite which can be dedicated as a 'gift' to the neighbours.

Modi had asked the scientists to work on a satellite that would provide full range of applications and services to all of India's neighbours.

He also said that ISRO is targetting 10 launches a year by 2016 .

"We intend up to 10 launches a year. By March next, 7-8 launches will be held. By next year, we are expecting 10 launches a year", Kumar said.

On the total outlay for the ambitious project, he said in the 12th five year plan, their allocation had been reduced.

"This year we expect to make full use of the allocation and are expecting anything between Rs 6000-to Rs 7000 crore," Kumar said.

Of the 7 IRNSS (Indian Regional Navigation Satellite System) constellation of satellites, 4 have already been launched and the remaining will be launched in the current fiscal, he said. ISRO was having "heavy demand" for launches and is in the process of planning for a third launch pad at Sri Harikota.