In the event of power failure or imbalance of Voltage from the EB Incomer, the DG Set will get start automatically and get connected to the load with reference of EB breaker/EB supply. When the EB supply is resumed the system will check for quality and stability of Voltage and the system will get switched off on pre set time and the DG will get switched off after pre set cooling time. Power FactorPower Factor (PF) is the ratio of Power Utilized (KW) and Power Drawn (KVA). Generally, when the applied to the electrical motors, the entire power is not converted as useful Work Done (KW). Depending on inductance of the motor a reactive power (KVAR) is generated which results in drawing of excess KVA.PF = KWH / KVAH To reduce the KVA drawn, the inductive KVAR is to be nullified by introducing an equal and opposite Capacitive KVAR according to the load pattern, thus OPTIMUM PF is maintained. Power Factor must be maintainedBy maintaining an optimum PF the Power drawn (KVA) can be reduced, thus reducing the current passing through the electrical circuits to the maximum extent possible (event up to 50%) thereby reducing the machine down time. reduction in heat losses in turn increases the life of the electrical circuits. The State Electricity Boards (SEBs) has installed Digital Electronic Energy (Tri-Vector) Meters for consumers, which has the provision of showing the PF and insisting to maintain the average Power Factor above a Specified limit (0.85 0.90 PF)Otherwise, for every reduction of 0.01 from the specified PF, PENALTY is levied on the Energy Consumption Charges (KWh) on the Electricity Bill. SEBs are also offering PF incentives if the PF is maintained above the specified PF. In few states, where the metering unit is KVAh and if the PF is maintained at its optimum of 0.99, the electricity bill amount itself is reduced considerably.