The price you've been quoted is far too exaggerated! ! !
One more thing, the power steering setup of 1999-2000 fits perfectly on 01-06 model as well. You will find that for as low as 2000 rupees.
If you're buying a second hand one;
1- Don't buy it from one place, and take it to your mechanic to fit it. Just get it fitted from the place you bought it from.
2- Check it for any leaks rightaway!
3- Turn the steering a number of times and check for any unnecessary sound
4- Turn the steering to its extent in any direction, and see if the RPM drops to 0. The RPM should drop a little, but shouldn't drop to 0.