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Any load carrying cable will have an IR drop . So IR drop is to be calculated, depending on the distance of the load from the source and size of cable. The effect of IR drop is getting reduced voltage at the load centre. Heating of the cable will depend on load current carried by the cable. (I²R) So proper size of the cable is to be used depending on the resistance of the cable.(Cross sectional area and length of cable)The size of the cable will decide the permissible voltage drop . So depending up on the permissible voltage drop and current rating and temperature rise the cable size should be selected