Measuring efficiencies in Indian public road transit: a data envelopment analysis approach

Efficiency evaluation is an important managerial tool for assessing the degree of resource utilization so as to give the desired outputs. The various approaches for this evaluation can be econometric or parametric by using a well defined productivity function or non-parametric by using Data Envelopment Analysis. This paper focuses on the performance of India’s Public Road Transport Undertakings. Data Envelopment Analysis is used to measure the technical scale and managerial efficiencies of Inter-state buses in India. Data was collected from the publication of Central Institute of Road Transport for 25 Transport undertakings that are run by the government departments or corporations. The private operators have been excluded from the study. The paper highlights certain important issues such as efficiency rankings and potential improvements for inefficient units. The undertakings have a great potential for efficiency improvement.