The study aims to develope techniques for generating digital elevation model(DEM) from IRS-1C PAN stereo image data. The bundle adjustment technique was used to determine the satellite exterior orientation parameters as a function of along-track lines. The first degree of polynomial was selected as a function of satellite attitude and position for each scan line. To evaluate the DEM and orthoimage generated, the resulted three dimensional coordinates of the 16 elevation points were computed with the map coordinates. The elevation test showed that root mean square errors of the DEM elevation was about $pm{16.66m}$ meters.