Traditionally electric power sector had over all activities in generation, transmission and also in distribution of power within its domain of operation. Such utilities referred to as vertically integrated utility (VIU).Due to continuous increase in industrialization and urbanization there is need of electrical energy. This gives rise into rapid growth of power system. The main focus of engineers to reshape three components of VIU. The restructuring is used to increase customer focus, power system performance and reduce the cost revenue. Congestion is one of the technical issue in power system restructuring. In restructured power system transmission congestion occurs when there is insufficient transmission capacity to simultaneously accommodate all constraints for transmission of a line. This paper proposes to relieve congestion using TCSC device without affecting on economic matter. Further a methods to determine the optimal location of TCSC has been suggested based on reduction of total system reactive power loss.
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