Damn. Thats bad. There was a E7400 in sale in the market for 2.5k.
Grab that. Its a decent C2D with 2.8GHz speed and 1066MHz FSB and 3MB Cache IINM.
If platform change then there are few options,
AthlonII X3 435 ~ 3.5k/PhenomII X2 555BE ~ 4.9k(If u are ready to gamble with unlocking. 80-90% success rate till now)
Biostar A785GE~3.3k(2 DIMM's)/ Biostar TA785GE ~ 3.7k(4DIMM, there is a sale in the market for about ~3.4k+free Thermal paste worth Rs.250)