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Indian power grid has evolved into a huge complex infrastructure. The process of making a National grid is also underway. The developments in the area of smart grid technology around the World have led to a paradigm shift in the way power grids have been monitored and controlled. In order to have a national smart grid, the government of India has also initiated various projects. The installation of phasor measurement units is one such major initiative. This paper outlines the developments and present status of the Indian power grid and explores the key areas in which a wider deployment of PMUs may be utilized to make the national grid smart.