Checking on the legality of a business venture such as a news website is one of the most intelligent queries one can come up with, prior to starting of, one that many entrepreneur's fail to understand the importance of.
As a matter of making information available to the public on a website, i think its the right approach to not be worried about legal restrictions, primarily coz Freedom of Speech and the pervasive medium of the internet are the drivers for the blogging industry, but having said that , in the strict sense, your actions are always under the purview of the Journalism Industry , even though you do not plan to venture into Print / TV at the present juncture.
Here are some finer points about publishing a news website.
One practical issue you will always face is getting more eyeballs as many news websites fail to win an audience in the presence of established players who wield more journalistic clout.
In order to really make a mark as a news website of national / international repute, one must have a strong perspective on the legal and liability related issues for publishing an online news site, so as to counter any threats from existing competition or any change in the existing IT and Journalism related laws in the country.
In addition you need to work on building / hiring a great team of journalists who are empathetic to your socio-political worldview, even if they dont agree with you they should be able to work with you.
It also helps to have the financial bandwidth to hire a great bunch of programmers and top notch designer's who can conjure up some online magic for you like Nytimes.
As far as the need for a news website in the already crowded news marketplace,its an opportunity for journalists & writers to articulate their perspective on various topics that are not given weightage in the mainstream media owing to the commercial & political compulsions of large media houses. Having said that the no.1 reason for News website and Blogs to proliferate still seems to be Free Speech, though India as a land for structured conversation on conservative / political / social / moral / ethical issues has not yet taken off, owing to our diverse cultural mindset, vernacular gaps in understanding and dominance of social sites like Facebook which winning the battle for user attention hands down.
I myself have plans of a socio-political news blog called "The Altruist" and an interest to develop a Wordpress like CMS for the same, but daresay, due to a lack of partners, thats one project that has not yet taken off .
DM if you wanna take the conversation forward or share notes.