If Donnelly beat Mourdock, Lugar would trounce him in a general election. The state party would clear the field for him to run.
Not to question your knowledge on Indiana politics as you are from there, but i am curious as how that would be any more successful than with Sestak? I guess the Indiana Democratic Party would be more receptive?
Indiana Democrats don't do contested primaries for statewide office. It's a phobia that dates back to 2008, when Jill Long-Thompson won a bitterly-fought primary race for the gubernatorial nomination and then got clobbered by Mitch Daniels in the general. Since then, Gregg in 2012 and 2016 and Woody this year faced no primary opponent, even as initially several candidates expressed interest. If Lugar had run, Zody would have had a frank conversation with Donnelly and he would have bowed out. IOTL, Lugar made a public appeal to Democrats to back him over Mourdock and I know at least one Democrat (my Mom) voted in the Republican primary that year for the express purpose of voting for him. So even if it
had gone to a contested primary, and it wouldn't have, I expect Lugar would have won.