Hey, Karthik
I'm using Velbon CX-300 Floor-Standing Tripod, it's a very basic one but can hold Camera Body (Nikon D60) weight 495 GM + Nikkor 70-300 MM lense (weigh 500 gm) very easily. I have even used it for taking panning images while bird flying. And I was very comfortable with it.
Here's the picture I tried taking on my tripod:
My suggestion would be, don't go for higher range tripods for now, get yourself use to the basic ones and than you may want to upgrade it later.
The one you mentioned will suit all your requirement and the cost you mentioned sounds decent to me. Usually Vivitar and Velbon offers good and basic tripods around these figures (Rs900 - Rs 1000).
I hope, I have answered your query, let me know if you need any more info and do let us know which one you bought?
Happy Shopping :)