Distribution system is one of the major sectors of the power system in a country. In this system, the maximum amount of loss occurs on the distribution side thus a complete analysis of the amounts of losses that each component has in the distribution system has to be made. Loss reduction initiatives in distribution systems have been activated due to the increasing cost of supplying electricity, the shortage in fuel with ever-increasing cost to produce more power. In this paper, various ways to reduce the losses have been shown for the BSP (H) CL (Bihar State Power (Holding) Company Ltd.). The whole Patna city's distribution system is modeled using ETAP software. The model has been extended to implement the proposed work and to examine their effects on loss reduction. Simulation results have shown that the implementation of these projects leads to a significant improvement in voltage profile, and reduction in the active and the reactive power losses. © 2014 IEEE.