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In this article a novel scheme using matrix converter is proposed for control of three phase machines. The analysis shows that the scheme has several benefits. By eliminating the common mode voltage from the three phases of the machine the motor bearing current is entirely removed. The maximum insulation stress in the motor winding is limited to the peak value of input phase voltage. The power factor at the utility end is controllable. By using matrix converters for power conversion bulky capacitors are eliminated from the drive.