Inductive loads in plant results lagging power factor and that’s why energy is wasted. Also electricity board charges heavy penalty for low power factor. Hence APFC Panel of required KVAR ratings are designed to maintain plant’s power factor to unity using capacitor bank in parallel with line. Power factor is maintained to set value using Microprocessor based APFC relay in automatic mode where as on/off push buttons are used in manual mode in case of APFC relay failure. Depending on nature of load, Standard/Heavy/Ultra Heavy Duty capacitors are provided. Typically MPP, APP type capacitors are used to form capacitor bank. Two types of capacitor switching are there, viz. Contactor and Thyristor switching. In case of non-linear load, suitable reactor(copper or aluminium wound) are used along with capacitors to filter harmonics.