With the growing increase in the power demand, there is an increased penetration of DG units in the power distribution network. Optimal integration of DG's is very essential to maintain the system stability. This work focuses on the fuzzy technique to find the optimal deployment of DG sourcess to maximize the total social welfare. The optimum placement of DG is decided by framing a fuzzy rule base with the bus voltage and the line congestion index as the input parameters. Optimal number of DG units is distributed across the network's nodes by the implementation of GA. The performance related to power loss minimization and welfare maximization is analyzed in an IEEE 33 bus test system.