Reconciliation talks between the government and telecom giant Vodafone have failed. The Finance Ministry has decided to withdraw its reconciliation proposal to sort out the 20,000 crore rupees tax dispute with the telecom operator and move ahead with the collection of dues. The Union Cabinet had in June last year approved a Finance Ministry proposal to go in for a conciliation process with the UK based Vodafone International Holdings BV to resolve the capital gains tax dispute. Sources said, although the Finance Ministry was keen on an amicable solution to the long pending dispute, dilly-dallying by the company led to the collapse of the talks.