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The objective of congestion management is to take actions or control measures in order to avoid line overloading of transmission networks. A restructuring based congestion management technique has been proposed in this paper. Proposed methodology can ensure an appropriate level of voltage stability enhancement of network. Minimization of system power losses is also obtained. A novel voltage stability index is derived in this paper which can quantify the condition of whole system on the viewpoint of voltage collapse. The effectiveness of the proposed method is illustrated on IEEE 14-bus reliability test system.