Abstract
Thermal power industry plays a leading role in power generation in India. This study employs the stochastic frontier production function methodology to measure the technical efficiency of Indian thermal power plants using latest available panel data. Efficiency varies widely across firms and regions and is timevariant. Mean technical efficiency increased from 79 per cent in 1994-95 to 85 per cent in 1996-97 which indicates that there is scope for raising power production without employing additional resources. The findings can aid policy-makers and international agencies in adopting appropriate strategies to improve power generation in India.
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