Last month's auction of Air India sale was huge failure with potential buyers took a backseat because of government's proposals. The Modi administration is said to renew their effort and revive the sale soon after new guidelines are decided.

The flag carrier has been a money-losing venture for a very long time.

The government will "re-examine" its privatisation process, including a clause on minority state stake in Air India sale, said Subhash Chandra Garg, Secretary, department of economic affairs, as quoted by Bloomberg.

The government is considering options and won't insist on keeping 24 per cent of the company, Garg said.

"A certain kind of strategy was offered that didn't find many takers and therefore something different will have to be done," Garg said in an interview in New Delhi on Monday. "There's no fixed objective that government should have 24 per cent. It can be re-examined."

On May 31 deadline, there were not one prospective investor interested in the Rs 50,000 crore debt-ridden airline.

Initially IndiGo had shown an interest but backed out after the government said it wasn't selling Air India's international operations separately.