Calcutta, Dec. 30: ITC is selling its edible oil processing plant in Mantralayam, Andhra Pradesh, to Adani Wilmar — a 50:50 joint venture between Adani Exports and Wilmar Holdings of Singapore — for Rs 21 crore.

Adani Group chairman Gautam Adani said: “It is true that we are looking at the plant seriously, but the deal hasn’t been concluded.” Sudip Bandopadhyay, ITC’s head of treasury, who was mandated by the board to sell the plant confirmed the deal, but refused to divulge details.

A memorandum of understanding between the two companies for the sale is believed to have been signed. Sources familiar with the deal, however, said the amount would be paid over a year — Rs 5 crore up front, and the rest in three equal instalments of Rs 5.33 crore each.

Though ITC exited the edible oils business in 1996, selling its controlling stake in ITC Agro Tech — its erstwhile food business subsidiary — to ConAgra Foods of the US, it continues to own the plant.

After withdrawing from the edible oil business, ITC leased out the plant to Agro Tech Foods (the new name of ITC Agro Tech), which is a subsidiary of ConAgra now.

Virginia House’s arrangement with Agro Tech ended last year, when the latter broke off the lease agreement by paying a compensation of Rs 43 crore. This, too, is being paid in instalments over five years till 2007. Agro Tech, too, had offered to acquire the plant, but Virginia House was not impressed with the price it quoted.