New Delhi, Oct. 7 -- Vodafone Idea share price jumped over 8% on Tuesday after reports said the Central government may offer a one-time settlement for the telecom company's long-pending dues worth billions of dollars. Vodafone Idea shares rallied as much as 8.61% to Rs.9.20 apiece on the BSE.

According to a Bloomberg report, the government is considering waiving off interest and penalties and giving partial relief on the main amount of the nearly Rs.2 lakh crore ($22.5 billion) demand. The move is reportedly aimed at resolving the issue and strengthening economic ties with the UK.

The timing of the proposal is also seen as strategic - it comes soon after India and the UK signed a trade pact and just before British Prime Minister Keir St...