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Measuring Technical Efficiency of Thermal Power Plant Using Data Envelopment Analysis

Power is a vital building block for development and growth of all the sectors of the economy and the society. This is even true in case of rapidly developing country like India. Objective of this research work is to assess the relative performance of western Indian state of Gujarat's thermal power plants (coal/lignite based) over a period of year from 2011 to 2012. Gujarat is India's leading power generating state. Data Envelopment Analysis (DEA) is utilized in assessing the technical efficiency of Gujarat's power plant/units and tried to identify relatively best performing generation units against worst performing units. This will lead to expose the ways of potential improvement for the inefficient units. The study utilizes the DEA model, which clearly indicates that private owned generation units have no more advantage over state owned generation units. Scale inefficiency is highly dictating the Government owned generation units.