prices have gone up for everything now. Rupee to dollar is 69. There will never be a mp3 player in 1000 rupees. Even the old tiny screen phones with 2-4GB storage are costing Rs 1700+. Even if you want to change iphone 4 battery it will cost way above 1000 rupees.
even second hand or third hand android phones cost above 1000. you will never get anything in that low budget.
i don't know when, but standalone mp3 players went out of fashion some time back. I hardly see Sandisk, Fiio or Cowon players for sale now.
Best option would be to save money and increase your budget to 5k and get a good android phone.