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This paper proposes the application of Particle Swarm Optimization (PSO) technique to solve Optimal Power Flow with inequality constraints on Line Flow. To ensure secured operation of power system, it is necessary to keep the line flow within the prescribed MVA limit so that the system operates in normal state. The problem involves non-linear objective function and constraints. Therefore, the population based method like PSO is more suitable than the conventional Linear Programming methods. This approach is applied to a six bus three unit system and the results are compared with results of Linear Programming method for different test cases. The obtained solution proves that the proposed technique is efficient and accurate.