A method for calculating capacitance value and magnetizing inductance value for an induction generator comprising the steps of representing the induction generator as a dynamic state equivalent circuit; obtaining an equation for terminal voltage from the above equivalent circuit for a stationary reference frame by setting co = 0; obtaining a 6th order polynomial from the above terminal voltage Equation in complex variable form V; generating the real part and imaginary part tif the 6th order polynomial by replacing the complex variable s in the 6th order polynomial as jco and substituting the value of Lm as [0 - Lmax value in the unsaturated region] and value of C as [0 - oo]; setting the real and imaginary parts of the above equation to zero and obtaining equations for C and Lm; solving the equations Obtained in the above step simultaneously and obtaining all the solutions for C and Lm; and extracting the capacitance value and corresponding magnetizing inductance (Lmax) value for the saturated region from the solutions obtained for C and Lm obtained in step (f) for smooth sustained voltage build up in an induction generator