Technocrat,
Only the Pioneer 12 Cd changer Model no.1280 will play on your head unit..in a straight forward and direct fit kind of way. It does not play VCDS or MP3's and costs about Rs.6500 in Bombay.
You can always convert it into a VCD also, cost for which would be a couple of grand depending where you do the conversion. MP3 changers are available by Sony, its a 10 disc for 9000 odd. But compatibility with your head unit is an issue.
Alternatively, since you are on a tight budget, you can go in for a 2nd hand Pioneer CD Changer of the 12xx series. However I dont recommend this unless you have a friend whos selling his car and is separately selling the changer. This option should set you back by 2000 - 4000.
Go for the Pioneer 1280
GTO
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