I believe most people already know this, many airlines have been burnt by previous investments and would take a more cautious approach. Etihad being a prime example of having a history of bad investments. Any future investment by Etihad would require a proper due diligence and the current Air India sale model just doesn't make economic sense. I don't see any other airlines making a real offer (besides oh well lets explore it) for Air India under current terms.
The aviation market is a difficult one and to take on such a huge debt and also straddle along an interfering partner with a seat on the board just doesn't make sense.
If the Indian government is serious about selling the airline off, it will have to change its terms to make it more attractive.