EGL is an overseas investment arm of the Essar Group. According to a company release, the MoU was signed in Qatar a few days ago by Mr Nasser Bin Hamad Al Thani, Director and General Manager of Qasco, and Mr Ravi Ruia, Vice-Chairman of Essar, in the presence of Mr Yousef Hussain Kamal, Minister of Finance, Government of Qatar, and Chairman of Qasco board of directors.

The implementation of the steel plant, to be located at the Mesaieed industrial city, will start subject to the project getting final techno-economic feasibility nod and achieving full financial closure. The plant is expected to go on stream in the first half of 2008 and will be completed in various phases.

"Qatar is seen as the ideal platform to launch industrial projects that need large amounts of energy either as feedstock or as fuel, as Qatar has the third largest natural gas reserve in the world. This joint venture between Qasco and EGL is expected to create new avenues of co-operation between India and Qatar and will definitely boost the economic growth of both the nations," said Mr Ruia. As per the agreement, Essar will provide high-grade iron ore pellets, the technology for manufacture and professional management to set up and manage the plant. Essar Constructions Ltd (ECL) will be the turnkey contractor for the project. ECL will supply substantial plant and equipment besides providing project management services from India. ECL has considerable experience in infrastructure and industrial projects, especially in engineering, project management and commissioning of greenfield steel plants of international size.