Abstract: Now a days, an important goal for the modern industries is to increase the productivity as well as decrease the production loss in order to stay economically competitive. For this purpose, a system for efficient fault management and also for the quick amendment of faults in the production line is necessary. The major roles of the fault detection and the fault diagnosis system for uninterrupted industrial processes is to make an effective indicator which is capable of identifying the fault status of a particular process and then afterwards taking an appropriate action in order to prevent the future failures and unfavourable accidents. Overloading is one of the major faults that occur in an electrical system, mostly within the industrial premises. Overloading, overvoltage, overcurrent causes harm to the electrical installations. These kind of faults are quite general to occur in industries and therefore, a proper protection scheme is needed. The most commonly used machines in any industry are induction motors. The very foremost step is to analyze the main reason behind the occurrence of the burning out of 3ph Induction Motor. There are various causes that can eventually lead to the failure of motor. Hence after multiple researches, it was studied that one of the most common cause of burning of 3ph induction motor inside the industrial premises was due to overloading. The concept of overloading is quite vast. In order to overcome this general problem of burn-out, an industry needs to install a protection scheme for the induction motor. The protection circuitry must contain of the indication at full load including the provision of tripping circuit at the occurrence of overloading.