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Parallel operation of synchronous and induction generators in micro hydro scheme is presented. The synchronous generator has an exciter, which provides a fixed excitation to produce normal rated terminal voltage at full resistive load. On the other hand, the induction generator has neither exciter nor speed controller. Static compensator (STATCOM) is connected to the common bus for terminal voltage and frequency control. A resistive dump load is connected across the DC link capacitor of STATCOM through a chopper to control active power. Simulink model is developed to perform transient analysis of the proposed scheme. Experimental results are presented to compare with the simulation results. It is found that connection of an induction generator in parallel with the synchronous is much simpler than connecting two synchronous generators in parallel.