Lifeline for Vodafone Idea as India weighs one-time settlement for ₹2 lakh crore in dues

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

Resolution in the nearly ₹2-lakh crore financial dispute may come through a waiver of interest and penalties, followed by a concession on the principal, the people said on the condition of anonymity as the discussions are private.