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The automotive industry in world is facing the problem of reduction of emissions coming out of the engine. Also, the stringent emission norms imposed by the regulating body for transition from BS IV to BS VI urges the auto makers to concentrate on new technologies to reduce the emissions. One of the major emissions coming out of the diesel engine is oxides of nitrogen (NOx) which is detrimental to human health. This NOx emission is formed when the combustion temperature of engine exceeds the threshold limit. There are several methods available to reduce these NOx emissions formed in-cylinder. Exhaust Gas Recirculation (EGR) is one such system, which reduces the NOx emission formed inside the engine by supplying a portion of the exhaust gases. By re-circulating exhaust gases, the air admitted to the engine is diluted. Further, due to the high latent heat of vaporization of water, water vapor tends to absorb more amount of heat that is generated during combustion.