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Digital relay is a special purpose signal processing unit in which the samples of physical parameters such as current, voltage and other quantities are taken. With the proliferation of computer technology in terms of computational ability as well as reliability, computers are being used for such digital signal processing purposes. As far as computer hardware is concerned, it has been growing steadily in terms of power and reliability. Since power plant technology is now globally switching over to such computer-based relaying, software reliability naturally emerges as an area of prime importance. Recently, some computer-based digital relay algorithms have been proposed based on frequency-domain analysis using wavelet-neuro-fuzzy techniques for transmission line faults. A software reliability allocation scheme is devised for the performance evaluation of a multi-functional, multi-user digital relay that does detection, classification and location of transmission line faults.