IJO sources told The Financial Express that an American industrialist wishes to set up a jute composite plant.

"He has already prepared a detailed feasibility report and approached for identifying a location for the plant.

He wants to set it up in a leading jute producing nation," sources said.IJO officials along with representatives of the Common Fund for Commodities and the UK-based Textile Consultancy Limited were in Calcutta to attend a seminar on the possible manufacturers and users of non-woven jute products like jute-felt, which has an application in the automotive sector. Research on non-woven jute items started in 1996.

India, one of the five jute-producing members, pulled out of the IJO in March last year when it failed to get textiles ministry official DP Bagchi elected to the post of chief executive director. Officiallly, India said it was quitting because the IJO had failed to achieve its goals.

"The entrepreneur has already signed marketing agreement with different parties in Europe and has arranged his funds too. He is just waiting to identify a suitable location for the plant," sources said.

At present, India and Bangladesh are two major jute producing nations. "An ideal location for a jute composite's plant would be either of these two countries. The entrepreneur wants to route the investment through IJO and as India is currently not member of the global body chances of bagging the investment are low," sources said.

Researchers say jute composite is a possible replacement for wood and plywood. It is formed from jute fibre and chemical resins. The product has been developed in different laboratories but there is hardly any commercial usage as large production units are yet to be set up.

"If India goes back to IJO then officials of the organisation can propose its name as an ideal location to the American entrepreneur. As it is not a member of the IJO, chances of arch rival Bangladesh bagging the investment is considerably high," sources said.

A top IJO official said without India, IJO will simply have no relevance. "India, after all, is the largest producer and consumer of jute goods. Not a single international body on jute can function without India as its member. However, we are hopeful that India will soon rejoin IJO. The recent election and subsequent floods in Orissa have only delayed the formal announcement," the IJO official said.

The IJO received another blow when Thailand, another jute producing nation, opted out of the organisation in May last year. This left the IJO with only three producing members - Bangladesh, China and Nepal.