The indigenously developed pilot-less target aircraft, Lakshya, was test-fired from the Chandipur Intermediate Test Range, about 13km from Balasore, on Thursday.
It was inducted into the Indian Air Force in 2000. But the trial was undertaken with an improved engine developed by the Defence Research Development Organisation, official sources said.
DRDO scientists and officials witnessed the test, which took place at about 1245 IST.
