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Pseudanabaena limnetica, the cyanophycean microalga, like other members of Cyanophycea, is an excellent source of pigments such as phycocyanin, proteins, carotenoids and polysaccharides. These strains also form a large proportion of algal biomass. The P.limnetica strain can grow in the extreme environmental conditions and it grows well in SW-BG 11 medium under laboratory conditions. In the present investigation, this cyanobacteria strain was isolated from the salt pans of Mulund Mumbai areas and it was cultivated in the lab under controlled conditions of light and temperature with optimum parameters of nitrate and carbonate concentrations. The culture was cultivated in the 60L photo bioreactor systems with the (65,000-85,000 lux) at 45?C in the SW-BG11 medium. The optimization experiments were carried out at the indoor and outdoor conditions. The nitrate and carbonate concentrations were optimized for obtaining maximum amount of algal biomass along with the blue-green phycocyanin pigment. The phycocyanin pigment was lyophilized for its further incorporation into the food and cosmetics products. The spectroscopic calculations of phycocyanin, allophycocyanin and phycoerythrin was done at 620, 650 and 562 nm using the Bennett and Bogorad equation. From the results obtained, it was concluded that 0.1gms/L and 1.5gms/L of the carbonate and nitrate concentrations, respectively, were the ideal concentrations for the further experiments for the cost effective production of P. limnetica in the SW-BG 11 medium. The outdoor conditions were found to be favorable for obtaining the maximum biomass and phycocyanin pigment production which would - make it more cost effective, commercially.