Group performance analysis of state electricity boards in india using data envelopment analysis

The measurement and improvement of organizational performance is of vital importance to the organizations today. In this paper, a method for benchmarking the performance of State Owned Electricity Utilities (SOEU's) in India based on data envelopment analysis (DEA) is presented. Basic theory of DEA, followed by the case study which evaluates the performance of 29 SOEU's in India on a common frontier is addressed. The results indicate that the performance of several SOEU's are sub-optimal, suggesting the potential improvement in the operation so as to improve the overall efficiency. Geographical constraint of the Indian Power sector needs the group-specific comparison. The relative efficiency on a common frontier is compared with the group - specific frontier. The reported results will be useful to SOEU's to improve their operational efficiency.

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