The paper presents a hybrid distance optimization (HDO) algorithm for optimal phasor measurement unit (PMU) placement in the Karnataka Power Transmission Corporation Limited (KPTCL) power grid to achieve maximum system observability and reduced costs for wide area monitoring systems (WAMS). The HDO algorithm incorporates depth first search, Dijkstra's, and Prim's algorithms to determine the minimum number of PMUs and establish the shortest distances between them while considering existing fiber optic infrastructure. The effectiveness of the proposed approach is verified through comparative analysis using various IEEE bus systems, demonstrating significant distance optimization both with and without fiber optic cable.