A non-contact capacitance type liquid-level transducer for a conducting liquid consists of a short circuited non-inductive coil wound on a uniform cylinder made of insulating material, such as glass, PVC, nylon, and teflon. The cylinder is connected with a storage tank through a metallic connector and the capacitance between upper short circuited end of the coil and metallic connector varies linearly with liquid level measured from datum level. The capacitance at datum level depends on atmospheric condition and the fringe effect of other conductors. So, the transducers require frequent recalibration depending on atmospheric and environmental conditions. In the present paper, this non-contact capacitive sensor has been further modified in order to minimize this defect of non-contact capacitive sensor. Furthermore, all the conventional capacitance type-level sensors are associated with a perpendicular plate capacitance between liquid and electrode, which varies with the length of the electrode. In this paper, the effect of this perpendicular capacitor on liquid level measured has been studied and its effect is minimized. The proposed modified transducer has been designed and developed and its theory of operation has been derived. The performance of the developed transducer has been experimentally studied and the experimental results are reported in the paper. A good linear performance characteristic of the transducer with very minimum parasitic capacitance effect has been observed. [ABSTRACT FROM PUBLISHER]