Abstract
The growth of any developing economy depends largely on its transport sector. Growing economy leads to more job opportunities and movement of people from rural to urban areas. Public road transport hence plays a significant role as a support system in carrying passengers. This paper discusses the efficiency of State Transport Undertakings of India, in particular, Delhi Transport Corporation (DTC) using the technique of Data Envelopment Analysis (DEA) and regression analysis. A data set of 46 State Transport Undertakings of India have been considered for the study. DEA was applied to compute the efficiencies of units under study. Potential improvements in the input and output variables were computed for the inefficient units. Regression analysis was then performed to identify the explanatory variables that significantly affect the input and output variables. It was observed that DTC is one amongst the worst performers. It showed a technical inefficiency of 50.94% and was operating on decreasing returns to scale. Further, DTC needs to increase its output substantially in order to attain the level of efficiency. Also it is not utilizing its resources optimally as it needs to reduce all its inputs. In other words, DTC is not utilizing its resources as optimally as its efficient peers. This paper is an attempt to apply regression technique along with the non parametric technique of Data Envelopment Analysis so that the decision makers of DTC can identify the areas where improvement is required and plan a strategy to improve their performance. This would enable DTC to move from a loss incurring to a profit making unit.
Highlights
India, over the past few decades has witnessed a transition from a third world country to a fast growing economy
The managers should look for sustainable solutions so that the commuters reduce the use of private vehicles lest the city will soon choke to death
This paper is an attempt to evaluate the efficiencies of State Transport Undertakings of India with a special reference to Delhi Transport Corporation (DTC) for the year 2015-16
Summary
Over the past few decades has witnessed a transition from a third world country to a fast growing economy. This swing has been possible due to its shift of Gross Domestic Product (GDP) from agriculture to manufacturing and tertiary sectors. A major metropolis, is officially the National Capital Territory of India It is the largest city in India in terms of geographical area of 1483 sq.km with a population of 16.75 million. The number of private vehicles has seen a sharply increasing trend This has led to the problem of traffic congestion on the roads resulting in many more problems such as traffic delays, productivity loss, air and noise pollution and waste of energy. The managers need to identify the reasons of their poor performance in comparison to their peers who are more efficient
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