Error loading jython callable 'application': No module named mysite

[Sreehari94]

I am using Django 1.8 on Jython in Windows 10. Have created a simple Django project following the tutorial https://docs.djangoproject.com/en/1.8/intro/tutorial01. After packaging using buildwar(including jars), when I deploy the mysite.war archive in tomcat, I get an error.
My project name is mysite, I have referenced the Jython path in web.xml. My project structure is

-mysite
-WEB-INF
-lib
-jruby-extras-fileservlet.jar
-jython.jar
-lib-python
-django
-doj
-polls
-application_settingspy.class
-application_settings.py
-eggs.pth
-web.xml
-wsgi

Error is:

Traceback (most recent call last):
File "D:\jython27\Lib\modjy\modjy.py", line 80, in service
self.exc_handler.handle(req, resp, wsgi_environ, mx, (typ, value, tb) )
File "D:\jython27\Lib\modjy\modjy.py", line 76, in service
self.dispatch_to_application(req, resp, wsgi_environ)
File "D:\jython27\Lib\modjy\modjy.py", line 92, in dispatch_to_application
app_callable = self.get_app_object(req, environ)
File "D:\jython27\Lib\modjy\modjy_publish.py", line 68, in get_app_object
return self.get_app_object_old_style(req, environ)
File "D:\jython27\Lib\modjy\modjy_publish.py", line 120, in get_app_object_old_style
return self.load_object(source_filename, callable_name)
File "D:\jython27\Lib\modjy\modjy_publish.py", line 142, in load_object
self.raise_exc(NoCallable, "Error loading jython callable '%s': %s" % (callable_name, str(x)) )
File "D:\jython27\Lib\modjy\modjy.py", line 121, in raise_exc
raise exc_class(message)
modjy.modjy_exceptions.NoCallable: Error loading jython callable 'application': No module named mysite

The application_settings file shows:

from mysite.settings import *
CONTEXT_ROOT = "mysite"

Please help me with this issue.