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Effective utilization of renewable energy sources and efficient management of electric energy are essential for any developing countries like India. This can be envisioned through the implementation of concepts of smart grid (SG). One of the key requisites for SG implementation is that the grid should be completely observable. Renovation of conventional Indian power grid to a SG necessitates incorporation of the phasor measurement units (PMUs) in the present power grid measurement and monitoring system. Since the cost of PMU is high and any bus containing a PMU makes the neighboring connected buses observable, optimal placement of PMUs is very important for complete observability of the grid. This paper proposes optimal redundant geographical locations in the northern, eastern and north-eastern regions of Indian power grid for PMU placement. The PMUs installed in these geographical locations will make the grid completely observable and maintain the observability under the conditions of failure of some PMUs or branch outages. Integer linear programming has been used for finding the optimal PMU locations. The results proposed in this paper can be a stepping stone for revamping the Indian power grid to a SG ensuring complete observability during different contingency conditions.