I seem to remember reference to machining into the water jacket in the process of installing seat inserts but that may have been just a fluke or casting flaw. My thought is it may be more expensive to install new seats, guides and valves than it is to buy a new head. There may be someone chime in that has actually had it done on one of these heads.
You did not answer if it was an English lister engine or an Indian clone. That will most likely be necessary to know. I would be inclined to have the casting core plugs removed and see if you can get an idea of how much meat might be around the seat area before you started spending money on machining for new seats. Even if they cannot finish satisfactorily they would most likely charge you set up time at least.
I think there are some parts suppliers on line that would quote a price. I am in canada.
Edit: Here is a link to a lister manual PDF.
http://www.woodnstuff.ca/ go to the heading articles and drp down Lister manual. It gives a cut away view of the head in the valve area. I think this is genuine lister so dont take for granted the clones might be anything like. I would not even expect this view to be very indicative of the water jacket side or thickness.