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The power plants usually operate on the strategy of economic dispatch. Due to the growing concern over the reduction of environmental pollution, there arises the necessity to reduce the amount of pollutants released into the atmosphere from the power generation plants. A hybrid technique involving genetic algorithm is proposed to solve the economic and emission dispatch problem. The incremental cost factor λ is searched using the binary coded genetic algorithm in the first phase. The best solution of the first phase is taken as the initial solution for the second phase where the search region is reduced. The solution is obtained using MATLAB, for a six-unit system.