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With the development of modern industrial technology a large number of non-linear loads are used in power system, which causes harmonic distortion in the power system. At the same time the power quality and safe operation becomes inferior. Therefore mitigation of harmonics is very necessary under the situation. This paper presents the design of two passive filters to reduce the current harmonics produced by nonlinear loads in industrial power system. Matlab /simlink software has been used for the simulation purpose. The results have been obtained with and without installation of filters and then it is observed that after installation of filters harmonics of the current are reduced and power factor is improved.