India weighs resolution of Vodafone dues row to bolster UK ties

India is considering a one-time settlement of its longstanding demand for billions of dollars in past-due fees from Vodafone Group Plc’s beleaguered local venture, as the government seeks to strengthen ties with the UK, people familiar with the matter said.

Resolution in the nearly 2 trillion rupees ($22.5 billion) financial dispute may come through a waiver of interest and penalties, followed by a concession on the principal, said the people, who asked not to be identified as the discussions are private. Officials are drafting the framework and also weighing steps to ensure any deal doesn’t spark legal challenges from other telecom operators that owe dues, they said.