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Several scenarios exist in the modern inter- connected world which call for an efficient network interdiction algorithm. Applications are varied, including various monitoring and load shedding applications on large smart energy grids, computer network security, preventing the spread of Internet worms ad malware, policing international smuggling networks, and controlling the spread of diseases. In this paper we consider some natural network optimization questions related to the budget constrained interdiction problem over general graphs, specifically focusing on the sensor/switch placement problem for large- scale energy grids. Many of these questions turn out to be computationally hard to tackle. We present a particular form of the interdiction question which is practically relevant and which we show as computationally tractable. A polynomial- time algorithm will be presented for solving this problem.