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The role of the transmission network in the Power System is to transmit the power generated in the power plants to the load centers and the interconnected power systems. The transmission of electric power has to take place in the most efficient way in addition to providing flexibility in the process. Flexible A.C. Transmission System (FACTS) promotes the use of static controllers to enhance the controllability and increase the power transfer capability. Providing reactive shunt compensation with shunt-connected capacitors and reactors is a well established technique to get a better voltage profile in a power system. Shunt capacitors are inexpensive but lack dynamic capabilities, thus some form of dynamically controlled reactive power compensation becomes essential. This feature is provided by Static VAR Compensator (SVC). The work presented here also compares SVC with fixed capacitor compensation and documents the superiority of SVC using Computer Simulation and its performance for reactive power management and better voltage control.