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This paper presents an accurate and reasonably complicated model to simulate the faulty induction machines. The proposed model is based on a permeance network method (PNM) and the differential equation system governing the induction machine behavior in presence of stator faults. The proposed model allows taking into account the saturation in magnetic circuit due to the fault currents as well as all the space harmonics of double slotted machine with moderate simulation time compared to the finite element method (FEM). Simulation results illustrate the impact of saturation in the case of some common stator faults such as stator inter-turn short circuits, shorted phase and open phase faults are presented. The simulation results indicate the difficulty to distinguish between the different fault signatures from the phase current spectrum and they demonstrate the necessity to survey multiple quantities in order to diagnose the type of fault.