Losses during Transmission is a major challenge while distributing electricity through large distribution networks especially in countries like India where population is unequally distributed in a large geographical area with a lot of diversities. Distance between transmission points is a major factor in determining the technical loss of electrical energy due to conversion as heat while using physical metallic media. Software models of Travelling Salesman Problem can simulate the process of finding optimized paths while designing distribution networks connecting remote places. Limitations in scalability and flexibility restrict conventional algorithmic models of TSP in complex practical situations of real world projects. Soft computing models can help to achieve more scalability, flexibility and even a better control over desired level of quality in output with respect to situational constraints. So they are more suitable in modeling real project environments which are subjected to dynamic changes as in electricity distribution networks. This paper illustrates the scope of soft computing technique known as Simulated Annealing, in such projects, for finding optimized paths within a restricted environment with constraints, through an iterative process model.