I question the validity of these "blog" stories.
The cost of the operation and subsequent care would far outweigh the potential price for a dowry to the family. Gender remodification takes many surgeries and continuing hormone treatments, which all bar the top 1% of Indian families could afford.
The child would certainly be sterile and likely unable to function sexually - hindering any potential arranged marriage and certainly would not bear any descendants to the family name (extremely important in most Indian culture).
Although stories of female mutilation are well documented, I think this story may be slightly fabricated as it just doesn't add up.