The present paper proposes a new formulation for the optimum distributed generator (DG) placement problem which considers a hybrid combination of technical factors, like minimization of the line loss, reduction in the voltage sag problem, etc., and economical factors, like installation and maintenance cost of the DGs. The new formulation proposed is inspired by the idea that the optimum placement of the DGs can help in reducing and mitigating voltage dips in low voltage distribution networks. The problem is configured as a multi-objective, constrained optimization problem, where the optimal number of DGs, along with their sizes and bus locations, are simultaneously obtained. This problem has been solved using genetic algorithm, a traditionally popular stochastic optimization algorithm. A few benchmark systems radial and networked (like 34-bus radial distribution system, 30 bus loop distribution system and IEEE 14 bus system) are considered as the case study where the effectiveness of the proposed algorithm is aptly demonstrated. (C) 2011 Elsevier Ltd. All rights reserved.