New Delhi: The government on Thursday said that no initial bids were received for the proposed stake sale and various options would be explored for the future of the debt-laden national carrier. This was a major setback to the Air India disinvestment process.

The deadline for submission of Expression of Interest (EoI) ended today with not a single bidder evincing interest in the airline, nearly one year after the Prime Minister Narendra Modi-led NDA government gave its nod for the stake sale.

In nearly two decades, this is the second time that Air India stake sale has not taken off. Back in 2001, during the then NDA government, the disinvestment process was scrapped. "As informed by the transaction adviser, no response has been received for the Expression of Interest floated for the strategic disinvestment of Air India," the Civil Aviation Ministry said in a tweet.

"Further course of action will be decided appropriately," it added. EY is the transaction adviser for the process. Civil Aviation Secretary R N Choubey said the government was expecting better participation for the Air India stake sale and indicated that there could be a re-think on the strategy.

 The alternative mechanism headed by the finance minister would decide the future course of action on Air India disinvestment, Choubey said, even as he emphasised that the government would not like the airline to lose the market share. A joint forum of Air India employee unions claimed "victory" as the government failed to attract bidders.

To a query on the possible impact on the government's fiscal deficit and disinvestment target, Economic Affairs Secretary Subhash Chandra Garg said, "We would need to look at what these options are whichever option is chosen... Will have an implication for current year". The government has proposed to offload 76 per cent equity share capital of the national carrier as well as transfer the management control to private players, as per the preliminary information memorandum.