Hello Ravi;
There have been a few discussions on the subject, most proposing SICAM and SICAM PAS as intermediaries between IEC 61850 and PCS 7.

Follow this thread discussing SICAM for IEC 61850:

/tf/WW/en/Posts/36610

Our friend Navnag proposes an alternative in the same thread:

Navnag

Dear Jasner

You can have a look at this option. This way you can have IEC61850 directly in PCS7 using a CP443-1 and you won't need SICAM-PAS. I believe they have a solution for Redundant PCS7 also.

New PCS7 Communication Blocks for the Integration of IEC-61850-capable Field Devices into Control and Automation Systems

http://www.siemens.com/S7_IEC61850

or

http://www.industry.siemens.com/industrial-services/it/en/PRODUCTS/SIMATIC_ADD_ONS/S7_IEC61850.HTM

Guess this would be more economical and suitable for small substations.

We have ordered it and would be trying it in one of our projects ( Though with S7 and not PCS7 )

Regards
Navnag