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The induction motor is the universal workhorse of modern industry. However, in past 2-3 decades attempts have been made to find alternative to this machine in various applications. It is demonstrated that permanent magnet synchronous motors and synchronous reluctance motors could be better choice in variable speed applications. From energy conservation point of view, suitability of these machines in general purpose high duty factor applications is also tested. It is demonstrated in literature that permanent magnet synchronous motors with line starting capability results in energy saving. Though, several aspects of these machines are well studied in literature, effect of power quality on the performance of these machines received no attention. This paper investigates the performance of these machines under short power interruptions which is one of the common power quality problems.