WellNot sure as to why. But as far as I can tell, reviving the IJT is an internally funded project by HAL much like reviving the HTT 40. So why not ? HAL gets some experience, which is always helpful and we get another domestic product to cheer for. Maybe in time the IAF/IN will need it and HAL, for the firsts time ever, will have a product ready to fly on time.
1) The HTT40 is an actual requirement with 100+ to be ordered by the IAF, Former Defence Minister Manohar Parrikar saw to this been selected and also made the reduction in the orders for PC7s
2) The IJT36 was way behind schedule so much that the IAF changed its Training regiment that null the requirement for the IJT - Here again Former Defence Minister Manohar Parrikar also cancelled this project
So why revive a dead project? - the funds can go else where no?