Nowadays in the restructured scenario, the main challenging objective of the modern power system is to avoid blackouts and provide uninterrupted quality power supply with dynamic response during emergency to improve power system security and stability. In this sense the convertible static compensator (CSC) that is the Generalized Inter line power flow controller (GIPFC), can control and optimize power flow in multi-line transmission system instead of controlling single line like its forerunner FACTS (Flexible AC Transmission System) controller. By adding a STATCOM (Static synchronous Shunt Converter) at the front end of the test power system and connecting to the common DC link of the IPFC, it is possible to bring the power factor to higher level and harmonics to the lower level and this arrangement is popularly known as Generalized Inter line power flow controller (GIPFC). In this paper a new concept of GIPFC based on incorporating a voltage source converter with zero sequence injection SPWM technique is presented for reinforcement of system stability margin. A detailed circuit model of modified GIPFC is developed and its performance is validated for a standard test system. Simulation is done using MATLAB Simulink.Index Terms—Convertible static controller, Flexible AC Transmission System (FACTS), Generalized Interline Power Flow Controller (GIPFC),STATCOM, SSSC, Reactive power compensation.