In this paper is to explain the unbalance electric scenario in the Power System. To explain how unbalance condition is one of the most important problems associated with power quality and creates several disturbances to the Power System. It includes the Harmonic reduction techniques to improve the power quality and it also includes the simulation for the same. This project presents a multilevel inverter topology suitable for the generation of 3 phase supply. A simple and fast carrier based Direct-torque control with pulse width modulation (PWM) scheme is also proposed for the topology which utilizes only the sampled amplitudes of the reference wave for the PWM timing computation. Individual independent inverter is combined to form the three phase output. Because of the loads are specific and it can be varied.