Nice katar, and of well represented form well known in northern regions of Indian from the northwest frontier to Punjab and New Delhi, but most likely Rajasthan, and 19th century style. As you have observed, it is more of an arsenal type weapon and wootz is unlikely.
These weapons when well patinated, should be treated with respect and any active rust stabilized, I am against removing patina and personally detest the often seen overcleaning seen too often on well aged old weapons. The quickest way to destroy the integrity of a weapon is to overclean it, especially to a garish polish (my opinion).
These weapons are imbued with history, and should not be overcleaned or embellished. Restoration should be limited to structural refurbishing as required and kept conservative. It seems like the rust on this katar is relatively superficial, just stabilize with some gun oil or light oil.
Congratulations Kukulz, nice example, and thank you for sharing it
All the best,
Jim