Imaging Infrared Spectrometer (IIRS) on-board Chandrayaan-2 is designed to measure lunar reflected and emitted solar radiation in 0.8-5.0 mu m spectral range. Its high spatial resolution (similar to 80 m) and extended spectral range is most suitable to completely characterize lunar hydration (2.8-3.5 mu m region) attributed to the presence of OH and/or H2O. Here we present initial results from IIRS reflectance data analysed to unambiguously detect and quantify lunar 3 mu m absorption feature. After pre-processing and data-reduction, a physics based thermal correction analysis of IIRS reflectance spectra has been done using co-located temperature measurements. Hydration absorption was observed at all latitudes and surface types with varying degrees for all pixels in the study area and its absorption depth shows distinct variability associated with mineralogy, surface temperature and latitude.