Zee Network and Viacom have signed the deal and are making a formal announcement on Tuesday. The content will be provided by Nickelodeon and be distributed by Zee on an exclusive basis. The pricing of the pay channel will vary between Rs 3 and Rs 4, Zee sources said.

Initially, it will be packaged with Zee Cinema which is a pay channel. When Zee Network starts its direct-to-operator service in mid-November, it will be packaged with the other bouquet of channels. There will be a stand-alone price for the channel also.

Sources said the approval from the Reserve Bank of India (RBI) is not necessary as it will be a "rupee trade." Viacom will not repatriate the money abroad. "Pay channels initially have to invest in the country. They have to also localise programming. So where is the money to take out," said a source.

Nickelodeon will be the first foreign channel to be distributed by Zee. The company is also talking with other foreign media companies to get niche channels into the country. "We haven't finalised any other channel so far. But we are talking," said a Zee source. The network needed a kids channel under its DTO package to target the youth.