Automatic Power Factor Correction System uses Thyristors instead of contactors for switching capacitors. The Power Factor Correction System ensures long life capacitors and efficiency of electrical installation. The Power Factor Correction System has over pressure safety interrupter mechanism which prevents explosion, bulging of capacitor. The Automatic Power Factor Correction System can be used with D.G. Which reduces KVA loading and improves the utilization of D.G. Set resulting into load growth.