This paper presents a new method of Fuzzy Particle Swarm Optimization (FPSO)-based Congestion Management (CM) by optimal rescheduling of active powers of generators. In the proposed method, generators are selected based on their sensitivity to the congested line for efficient utilization. The task of optimally rescheduling the active powers of the participating generators to reduce congestion in the transmission line is attempted by FPSO, Fitness Distance Ratio PSO (FDR-PSO), and conventional PSO. The FPSO and FDR-PSO algorithms are tested on the IEEE 30-bus and Practical Indian 75-bus systems, after which the results are compared with conventional PSO to determine the effectiveness of CM. Compared with FDR-PSO and PSO, FPSO can better perform the optimal rescheduling of generators to relieve congestion in the transmission line.