India star Dhoni took to Twenty20 at The Oval last week
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India has formally agreed to play in the 2007 Twenty20 World Championship and will become the last top nation to play domestic Twenty20 cricket.
India have scheduled the domestic tournament next May.
"We were reluctant at first to adopt this version because we thought it would undermine the 50-overs game," said the cricket board's Niranjan Shah.
"But we were left with no choice after being outvoted 10-1 at International Cricket Council meetings."
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We don't want to be reluctant participants at the World [Championship]
Niranjan Shah Indian cricket board
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Twenty20 has been a massive success in England since launching in 2003, and has also been acclaimed in South Africa, Australia and Pakistan.
India stars Rahul Dravid, Sachin Tendulkar and Mahendra Dhoni played a charity Twenty20 game against Pakistan at The Oval last week.
"We don't have a domestic [Twenty20] competition and I think it has a place in domestic cricket," India captain Dravid said then.
The domestic Twenty20 tournament will follow the traditional 50-over World Cup, which takes place in the Caribbean.
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We look forward to a world-class tournament in South Africa that will capture the cricketing public's imagination
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And India, who turned down the chance to play a Twenty20 international as part of next summer's England tour, will ask South Africa for a Twenty20 international later this year.
Shah added: "The new format will take time to get used to, but we don't want to be reluctant participants at the World [Championship]. We must play it at the domestic level first."
The ICC welcomed the move to play in the inaugural Twenty20 multi-team event, which will take place over nine days in South Africa in October 2007.
"We congratulate the BCCI on joining the other full members in embracing the format," said ICC president Percy Sonn.
"We look forward to a world-class tournament in South Africa that will capture the cricketing public's imagination.
Sonn confirmed the Twenty20 World Championship will also involve two teams from below Test level.
They will be decided at next January's ICC World Cricket League Division One in Kenya that involves Bermuda, Canada, Ireland, Kenya, the Netherlands and Scotland.
India's announcement of a domestic programme was greeted by former Delhi fast bowler Sunil Valson.
"This version is going to be appreciated in India, where cricket is already the most popular sport," he said.
"Since the game can start late in the evening, more and more people can attend it. Also, it is going to be the batsman's game."
Additional reporting by Ayanjit Sen in Delhi.