Reform Initiatives for Electrical Distribution Utilities in Jharkhand, India

Abstract

In order to lower the cost of power, many countries have started reforming their power sectors with the participation of private companies. The Jharkhand State Electricity Board (JSEB) has been restructured into four different companies in the year 2014. In this paper, the relative efficiencies of electrical distribution utilities (EDUs) of the state are evaluated for the period 2008–2011 through the application of data envelopment analysis (DEA). The analysis of the relative efficiencies reveals the need of efficient reform initiatives for the EDUs of JSEB. In this regard, the present work proposes few initiatives that are additionally useful for electrical distribution sector in the state Jharkhand, India. Grouping of similar types of EDUs and change of circle based on geographical nature are proposed as two efficient initiatives for the distribution sector of the state. The mean efficiency score is evaluated before and after the implementation of proposed initiatives to verify the effectiveness. The findings of the research show the improvement of efficiencies after the application of the proposed initiatives.