The ballpark norm followed usually while planning generation in a power system is that for each MW added, a total additional 300 KVAR lagging reactive power should be injected at appropriate places in the network. The idea is to operate the generator as far as possible at about 0.9 power factor lag so as to ensure good transient stability and at the same time maintain normal voltage levels at all buses. The total reactive power requirement of the network to achieve these norms Ex: generator PF and bus voltage level is partly met by the generator itself, partly by network line capacitance, partly by consumers through maintaining their power factors close to unity and mainly by the shunt capacitor banks and Static VAR compensators connected at different locations. However these norms are usually not followed as already mentioned. With the result the overall system operation becomes inefficient.