Chandrayaan-2 will be Isro's first inter-planetary mission to land a rover on any celestial body.
The first lunar mission in India costed about 60 million USA dollars.
Another reason, he cited, behind landing the rover near the south pole was that the area has not been explored by other missions.
The Secretary, Department of Space and Chairman Space Commission Dr. Sivan K said that the total cost of the Chandrayaan 2 mission will be about Rs 800 crore.
A tiny Indian robotic vehicle - ferried on board Chandrayaan-2 - will roll over a desolate region on the lunar surface for 14 days later this year to carry out scientific experiments in order to understand the origin and evolution of the moon. Singh said, "This is as good as landing a man on the Moon". It is under Chandrayaan-1 mission that the ISRO spotted water on the moon.
"The targeted date is April. In case we miss the April date, we will launch it in November", Sivan added.
Citing the reason behind landing the rover near the south pole, Mr Sivan said it is a "very tricky area" with rocks formed a million years ago. "We don't know whether the instruments will survive that but we hope they would wake up after the lunar night", Sivan said. "Most of the lunar missions in the past have explored the area around the equator of the moon", Mr Sivan added.
The six-wheeled rover will move around the landing site near one of the lunar poles in semi-automatic mode. The information will be transmitted to Earth through the Chandrayaan-II orbiter.
The Chandrayaan-2 is a totally indigenous mission comprising of an Orbiter, Lander and Rover. After reaching the 100 km lunar orbit, the Lander housing the Rover will separate from the Orbiter. After a controlled descent, the Lander will soft land on the lunar surface at a specified site and deploy a Rover.