With the advancement in Power electronics, FACTS devices are being utilized to achieve many objectives in an electric power system. Facts technology opens up new opportunities for controlling line power flows, minimizing losses and maintaining bus voltages at desired level in a power system network. These are done by controlling one or more of the interrelated system parameters including series impedance, shunt impedance, current, voltage, phase angle etc. with the insertion of facts controllers in a power system network. In this project static var compensator (SVC), a shunt type controller is used to reduce total system losses. As the power flow equations are nonlinear, hence nonlinear techniques must be employed. Some classical methods like Newton based techniques give satisfactory performance but have some drawbacks. In this design, the convergence criterion is not set based on no. of iterations but the load flow criteria. In this project modified SA,PSO and Hybrid(MSA+PSO) based approaches are proposed to solve the loss reduction problem. This is done in two steps: First, the suitable buses(33 IEEE Bus System) are identified by using line loss sensitivity index. Second, modified SA/PSO technique is employed to determine the amount of shunt compensation required for loss minimization.