Measuring productivity change in Indian coal‐fired electricity generation: 2003‐2010

Abstract

Purpose – This paper aims to study the changes in productivity for 25 state‐owned coal‐fired power plants (CFPPs) over a period of seven years (2003‐2010).Design/methodology/approach – The methodology that is utilized in the study follows a non‐parametric approach of data envelopment analysis (DEA) and uses the Malmquist index to estimate the change in productivity of panel samples. In the calculations, the study considers installed capacity, fuel, labour, electricity used, and average operational time as inputs and considers net electricity produced as output.Findings – The results indicate that the average total factor productivity regressed during the investigation period at an annual rate of 2 percent. The decrease in productivity is equally attributed to the technical efficiency change and technological change components, with an average decline in productivity of 1 percent per year. A plant‐wise analysis demonstrates that the Parichha plant recorded an average increase in productivity of 3.9 percent...