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This paper presents a new robust sensorless control system for high performance induction motor drives fed by a matrix converter with variable structure. The lumped disturbances such as parameter variation and load disturbance of the system are estimated by a variable structure approach based on model reference adaptive scheme. A Reduced Order Extended Luenberger Observer (ROELO) is also employed to bring better responses at the low speed operation. Experimental results are shown to illustrate the performance of the proposed system.