1Finance Officer, Gujarat Industries Power Company Ltd, Surat, Gujarat, India. He can be reached at amritpal_dhillon2000@yahoo.com
2Lecturer at Australian Institute of Higher Education, Sydney, Australia. He can be reached at h.vachharajani@aih.nsw.edu.au
Online published on 8 December, 2017.
In this article, the non-parametric Data Envelopment Analysis method (DEA) is employed to evaluate the productivity of 54 state power distribution utilities in India. Input-oriented DEA model is used for the period 2011–2012. During the analysed period, the average technical efficiency, pure technical efficiency (PTE) and scale efficiency are 82.4%, 84.4% and 97.4%, respectively. A result reveals that nearly 48% utilities are scale efficient and remaining 52% utilities are inefficient. Further, it is noticed that there is a monotonic dependence between PTE and profit after tax. Nevertheless, this piece of paper observed that the power utilities operating in Gujarat region have edged over the other utilities. Results of this empirical study will provide useful information to the energy planners and concerned authorities in formulating better policies at macro levels.
Benchmarking, Performance evaluation, Power distribution industry, Productivity, Profit after tax
