"Loha" verified with several native speakers, both from the North and the South. "Stila" sounds like "indianized" English.
In any case, it is the homophony of "Ful" in Hindi and Farsi that is the point.
But the relation of Sukhela (var. Sakhela) to the current discussion is puzzling. The kind of steel used for its production is only one possiblilty, but Sukhela or Dhup as a specific name for a straight-bladed sword was recorded by Tarassuk & Blair in their Encyclopedia and by E. Jaiwant Paul in his book on Indian weapons. This "controversy" is nothing new.
That was even discussed here in passing years ago..
http://www.vikingsword.com/vb/showthread.php?t=10071