Abstract
Coal is the primary source of energy in India. Despite being the second-largest coal-producingcountry, there exists a significant difference in demand and production in India. In this study, the relativeefficiency of twenty-eight selected opencast mines from a large public sector undertaking coal companyin India for 2018–2019 was assessed and ranked by using data envelopment analysis (DEA). This studyused input-oriented DEA with efficiency decomposition to pure technical efficiency, technical efficiency,and scale efficiency. The result showed that 25% and 36% of mines were efficient in technical efficiencyand pure technical efficiency, respectively, whereas the eight mines scale efficiency was inefficient witha decreasing return to scale. Further, in this study, theMalmquist Productivity Index (MPI)was employedto measure the efficiency of the selected mines for three consecutive years (2016–2017 to 2018–2019).The result shows that in only three mines the efficiency is continuously improving from 2016–2017 to2018–2019, whereas in more than 20% of mines the efficiency score is decreasing. Comparing theMPIefficiency and productivity assessment throughout the years, changes in innovation and technology areincreasing from 2017–2018 to 2018–2019. Finally, the study concluded with a comprehensive evaluationof each variable with mines performance. The author formulated the strategies, which in turn help coalprofessionals to improve the efficiency of the mine.
Highlights
Coal is the primary source of energy in India
This study aims to achieve the following objectives: (1) measure the different relative efficiencies of the selected opencast mines by using the data envelopment analysis (DEA); (2) benchmark the mines with actual and projected values; (3) the study uses the Malmquist DEA model to analyze the efficiency change and productivity change for three consecutive years; (4) discuss the reasons why there are differences in performance and formulate the strategies for further improvement
The data were incorporated into the DEA model to demonstrate the application and run by using the MaxDEA Pro software [14]
Summary
Coal is the primary source of energy in India. Coal mining significantly contributes to the economy of India as it is used as a prime source for electrical energy needs. Coal is used in electricity generation, steel and cement production, and other industrial activities like paper, textiles, etc. During 2018–2019, electricity generating units consumed 637.95 Million tonnes of coal, followed by the steel and washery industries (69.50 Million Tonnes), the cement industry (8.82 Million tonnes), and the paper industry (1.64 Million tonnes) [1]. Every year the Planning Commission of India has been estimating the demand of coal in advance to meet the requirement [2]. India is more or less dependent on the company to produce the coal needed in the country. Despite being the second-largest coal-producing country, there exists a significant difference in demand and production. The performance of the Indian coal company must be measured and assessed, so that strategies are formulated to improve the performance
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