Calcutta, Aug. 16 : ITC and Agro Tech Foods, a 51 per cent subsidiary of ConAgra Foods, USA, have settled their dispute over the edible oil manufacturing facility at Mantralayam in Andhra Pradesh. The plant at Mantralayam is owned by ITC. It was leased out to Agro Tech when ConAgra acquired controlling stake in what used to be ITC Agro Tech from the tobacco major. After the change in management control in 1996, the company was renamed Agro Tech Foods. After using the plant for five years, Agro Tech decided to discontinue the lease arrangement in September last year. ITC was upset with the decision and pressed Agro Tech for extension of the arrangement. ITC said Agro Tech was bound to continue the arrangement, whereas Agro Tech said the plant was unviable due to logistical problems. The matter was finally referred to the London Court of International Arbitration for settlement. While the matter was sub judice, officials of ITC and Agro Tech continued to negotiate and reached a settlement recently, which the London Court of International Arbitration ratified. Under the agreement, Agro Tech will pay ITC Rs 43 crore over the next five years as compensation for terminating the arrangement. Both ITC and Agro Tech informed the stock exchanges today that they had buried the hatchet. A director of Agro Tech said: 'About 50 per cent of the edible oil consumed in the country now, is imported and processed here. 'The plant at Mantralayam was extensively used in the past to crush seeds and produce edible oil domestically. 'But such facilities are not required anymore. What is more, the plant being located in the interiors of Andhra Pradesh, logistic costs of operating it are very high.' It is not clear what ITC intends to do with the plant now and the ITC spokesperson was not available for his comment on the matter.