Lord of Light is one of my favorite sci-fi novels. Great use of non-linear storytelling and Hindu mythology. If they do, I hope they ignore the Argo connection all together (save for mentioning it in marketing and maybe keeping the Jack Kirby designs the pre-military operation team commissioned when it was meant to be an actual film) and make the best possible movie they can on a fantastic book by the brilliant Roger Zelazny (also known for the Amber series).
I haven't seen the Ben Affleck film, but it's ridiculously frustrating to hear people speak about one of my favorite books as "maybe they could turn it into a cheesy, no-budget SyFy original movie!" In the movie (from what I can gather), the Lord of Light connection is never made and they treat it like it was some random sci-fi script floating around and then the CIA and co. commissioned Jack Kirby, etc. to do the design work and the like. When actually, Kirby was hired when they were seriously going to make a Lord of Light movie, all the production artwork and all that stuff was done thinking it was going to be an actual movie. I understand where the OP's coming from, people often leave movies "based on a true story" with the impression that's what really happened, but it's just really hard for me to see a thread like this made, completely oblivious that the script they had was based on a genuinely wonderful novel.