In this Paper, a Cluster based congestion management has been presented. The Paper is concerned with the Real and Reactive power rescheduling problem in a deregulated market environment. The aim of the proposed work is to minimize deviations from transaction schedules and hence the congestion cost. The TCSC maximizes the power transfer capability between a specific power seller and a power buyer in a network. The TCSC is installed in the most congested lines and analyzed. The method is formulated as a stochastic optimization problem and is solved by Particle Swarm Optimization. The algorithm is illustrated using New England 39-bus system.