With the increasing of non-linear loads in electric power system, power quality distortion has become a serious issue in recent years. In paper and pulp industries, due to presence of concentrated high power non-linear loads such as electric drives, this problem is a greater concern. In this paper, the impacts of harmonic distortions on the electric drives in Delta paper mill, Vendra, West Godavari(Dist),Andhra Pradesh, India is investigated. The harmonic measurement is done with Fluke 434 power quality analyzer. Different solutions exist to reduce the harmonic emission of Adjustable Speed Drives in order to fulfill the requirements of the international harmonic standards. In recently active power filters gained an increased attention due to their effective harmonic reduction. In this paper an active power filter has been designed for minimization of the harmonics, which is implemented in matlab/simulink based on real time measurement of the harmonic data.