India's broadcasting ministry has approved plans by Space TV and Sun TV to launch direct-to-home (DTH) digital satellite broadcasting services.
The new services will compete against Dish TV, launched in 2003, and the free-to-air service DD Direct Plus, launched last December.
Space TV is owned by India's Tata group and News Corporation's Star.
The broadcasting ministry issued a letter of intent which will be followed by a formal licence enabling Space TV to launch its pay-TV service by the end of the year.
Vikram Kaushik, chief executive of Space TV, said: "We are very excited that the clearance has been awarded.
"Both partners, Tata and Star, are fully committed to invest in building a high quality digital infrastructure in the country to offer a world class television viewing experience to Indian households.
"We believe the service will immensely enhance the choices of viewers looking for the best of pay television services in the country."
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