Exactly that is what should be done!
Besides instead of blindly following ALCO/EMD/GM's loco design plans blindly,IR should try to build a totally indigenious diesel loco.
Look at what CLW has done WAP1,WAP2,WAP4,WAP7 were all build in India.
If Clw can do such a brilliant job,no reason why the DLW Varanasi can't?