This story is being badly reported, but I imagine parts of it are true. Those who are being subject to surgical alteration (or perhaps are simply being raised as male) are 46XY karaotype with undescended testes. Because they're being reported as sterile and having external female genitalia, I'm betting this is primarily children with partial or mild androgen insensitivity and in a population the size of India there are going to be very large numbers of intersex children born every year. In a country where having sons is so important, the "make a hole out of a pole" nastiness that has occurred elsewhere is being skipped over and any intersex child who can be assigned male is being assigned as such.
If it was a cheap and easy surgery to turn typical female genitals into male ones, there'd be far more FtM individuals lining up to get bottom surgery. This is surgery being pushed onto intersex children. It's simply a gender flip of what happens in the western world.