That does look like a crack, it could probably be brazed but I worry there may be further cracking inside. Replacement cylinder blocks are readily available, some are just cast iron while others have steel wet sleeves, I recently heard of one with a chrome plated bore.
My biggest concern about your project is that the heat it has been exposed to may have annealed some of the hardened and tempered components, things like cam lobes and followers. Replacements are available but it could get expensive and the quality of some Indian manufactured components is questionable.
38ac did a very good explanation on how to balance a Listeroid, it didn`t involve tying pieces of steel to the spokes with wire! If you do get it going and it`s a real jumper you might consider replacing the cast iron piston with a lighter weight aluminium piston.
Looking forward to seeing how you get on, good luck.
Bob