TECHNICAL EFFICIENCY OF POWER SECTOR IN INDIA: DATA ENVELOPMENT ANALYSIS

Abstract

This study intends to measure Productivity change of Power sector in India during the period of 2000-01 to 2013-14. To fulfill the objectives of the study secondary data has been collected from GOI, Indiastat.com and Ministry of Power. In this study the nature of efficiency and productivity change is investigated through the Malmquist Productivity Index (MPI).The Malmquist productivity index has the components which are used in performance measurement; such as changes in technical efficiency, change in technological change, change in pure technical efficiency, change in scale efficiency as well as change in Total factor productivity. This study has taken two highest power generating sources – thermal and hydro. Symbols here listed as DMU1 and DMU2 respectively. The results of the study show that DMU1 (thermal) is efficient than DMU2 (Hydro).