In electric power system, the line stability indices adopted in most of the instances laid stress on variation of reactive power than real power variation of the transmission line. In this paper, a proposal is made with the formulation of a New Voltage Stability Index (NVSI) which originates from the equation of a two bus network, neglecting the resistance of transmission line, resulting in appreciable variations in both real and reactive loading. The efficacy of the index and fuzzy based load flow are validated with IEEE 30 bus and Tamil Nadu Electricity Board (TNEB) 69 bus system, a practical system in India. The results could prove that the identification of weak bus and critical line in both systems is effectively done. The weak area of the practical system and the contingency ranking with overloading either line or generator outages are found by conducting contingency analysis using NVSI.