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A sensorless induction machine drive is presented, in which the principles of variable-structure control and direct torque control (DTC) are combined to ensure high-performance operation in the steady state and under transient conditions. The drive employs a new torque and flux controller, the "linear and variable-structure control", which realizes accurate and robust control in a wide speed range. Conventional DTC transient merits are preserved, while the steady-state behavior is significantly improved. The full-order state observer is a sliding-mode one, which does not require the rotor speed adaptation and provides accurate state estimation in the entire speed range. The proposed scheme is a complete variable-structure solution that allows persistent sensorless operation of the drive at very low speeds, including zero and 3 r/min, with full load. Simulations and extensive experimental results confirm the robustness, accuracy, quickness, and low-chattering operation of the drive.