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This paper presents a novel approach for reactive power planning of a connected power network. Reactive power planning is nothing but the optimal usage of all reactive power sources i.e., transformer tap setting arrangements, reactive generations of generators and shunt VAR compensators installed at weak nodes. Shunt VAR compensator placement positions are determined by a FVSI (Fast Voltage Stability Index) method. Optimal setting of all reactive power reserves are determined by a GA (genetic algorithm) based optimization method. The effectiveness of the detection of the weak nodes by the FVSI method is validated by comparing the result with two other wellknown methods of weak node detection like Modal analysis and the L-index method. Finally, FVSI based allocation of VAR sources emerges as the most suitable method for reactive power planning.