Switched Reluctance Motors (SRM) have emerged as viable alternatives to other adjustable speed drives such as vector controlled induction motors (VCIM) and permanent magnet brush-less (PMBL) motors due to their simple construction, ease of control, low inertia and higher operating speeds. However, the indispensability of the rotor position sensor in an SRM for its successful operation increases its cost, apart from causing other problems like decreasing its reliability and inability to operate in adverse environmental conditions. In this paper, a new sensorless control scheme for the SRM is advocated. The required fundamental data is obtained by analyzing the SRM using the Finite Elements (FE) package MAXWELL. The drive is studied in both 'with sensor' and 'sensorless' modes and a comparison of the performances, in both cases, is presented for various operating conditions.