To obtain a high performance in a vector controlled induction motor, it is essential to know the instantaneous position of the rotor flux which depends on the rotor time constant. But the rotor time constant mainly varies due to the temperature rise in the motor winding, so real time compensating algorithm is necessary. This paper proposes that it uses short duration pulses added to the constant flux command current and then resultant torque command current produced by speed controller is utilized for the rotor resistance estimation. This method has advantage with a low computational requirement and does not require voltage sensors. The proposed method is proved by simulations and experimentals.