Thyristor Controlled Series Capacitor (TCSC) is employed as actuator in an interconnected power system using Supplementary Damping Controller (SDC) to enhance the power transfer capabilities between areas as well as damp out the Inter-Area Low-Frequency (IALF) oscillations by varying the impedance of transmission lines. The time-varying delays in the feedback loop and asymmetric saturation limits at the output of TCSC may reduce the performance of the designed controller and lead to closed-loop instability if these are not considered in the process of controller design. Usually, a Minimum Absolute Saturation Bound technique (MASB) is used to convert asymmetric saturation limits into symmetric one. However, such consideration provides an apparent conservative and degrades the performance of the control system. To reduce the conservative in the control design process, a Normalized Saturation Bound (NSB) technique is used in this paper to convert asymmetric saturation limits of TCSC of time-delayed power system. The L-K functional and generalized sector conditions are utilized in the proposed controller design process to compensate the effect of time-varying delay and converted symmetric saturation limits. Sufficient conditions required for controller design are formulated in LMI form. 2-area 4-machine power model is used to verify the performance of the designed controller. From the simulation results, it is observed that the designed controller is giving superior performance in the present of time-varying delays and asymmetric saturation as compared to the designed controller using MASB technique. © 2021 De Gruyter. All rights reserved.