For ideal use of available power, the receptive power consumption must be lessened or invalidated i.e. power component ought to be unified, hence, the majority of the Power Distribution organizations have the policy to punish industrial and commercial customers for not conserving power factor beyond a certain limit (normally over 0.90 esteem). In any case, because of responsive power drawn by capacitive or inductive load in the client’s premises the power variable is either slacking or leading, in this way to maintain it within breaking point i.e. for remunerating or providing required KVAR, the capacitors (if lagging PF) or reactors (if leading PF) are joined across the system. For steady load the secured KVAR reward is required, while for variable load the KVAR conditions likewise change in according to the load term cycle, therefore in this situation, the Automatic Power Factor Control Panel is mounted.