Method 1:
For getting the absolute best quality, I would recommend a Digital TV Tuner card. As DTH in India is via satellite (dish) you will need a DVB-S card i.e. Digital Video Broadcast - Satellite.
Capture is direct in MPEG2 TS (transport stream). You will then need to run it through ProjectX which will clean the stream and convert it to MPEG2 ES (elementary) demuxed streams. Use the output to directly author DVD's with IFOEDIT and burn with Nero.
I'm not sure how encryption etc works in India (are you using a card in your set top box?)
I used DVB-T (Terrestrial) in Australia to get all free to air channels in pristine SD (DVD quality) and mind blowing HD (high def)
For basic info on handling DVB streams check out the forums at -
http://www.dba.org.au/
Method 2:
Run the output of your set top box or TV to your PC analog TV Tuner/ capture card.
Note: This won't work if the broadcaster uses a special protection flag while encoding their stream. This is similar to Macrovision protection and is widely used in the USofA. I haven't come across any protection in Oz as it's very legal to record TV downunder.
Keith