In this paper Particle Swarm Optimization (PSO) technique has been used to solve a multi objective optimization problem of minimizing total power loss and maximizing the total transfer capability simultaneously through optimal placement and rating of SVC. The problem is divided into two parts. The first part is optimal placement of the SVC using line loss sensitivity index and the second part is to solve the multi objective optimization of minimizing power loss and maximizing Total Transfer Capability (TTC) with system constraints like power balance, voltage limits and line thermal limits using PSO to calculate optimal SVC parameters. To demonstrate the effectiveness of the proposed method, simulations are performed on New England 16-machine 68- bus system and the results are presented.