Measuring the Technical Performance of Orissa Power Generation Corporation Limited using DEA-SBM

Authors

  • Amritpal Singh Dhillon

DOI:

https://doi.org/10.33516/rb.v43i2.97-109p

Keywords:

Benchmarking, Data Envelopment Analysis, Earning per Share, Performance Evaluation, Technical Efficiency.

Abstract

The operational well-being of the generation sector is crucial for the financial viability of the entire value chain of the power industry. The objective of this research work is to assess the operational performance of Orissa Power Generation Corporation Limited who is engaged in the generation of power, which is transmitted to the end consumers through intermediaries. The slacks-based measure (SBM) of efficiency proposed by Tone (2001) has been used to assess operational performance, to which results have shown that 25% DMUs are efficient and exhibit a constant return to scale, where the remaining 75% DMUs are inefficient and exhibit increasing return to scale. The SBM model could facilitate inefficient DMUs in identifying the inputs slack and ways to become efficient. Kendall's monotonic correlation that was applied on pure technical efficiency (PTE) and earnings per share (EPS) has been used to conclude that there is no monotonic dependence between operational efficiency and earnings per share. Results of this research paper are useful for policy and decision makers to achieve better overall performance and provide more reliable energy at a reasonable rate to final consumer or society as a whole.

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Published

2017-07-01

How to Cite

Dhillon, A. S. (2017). Measuring the Technical Performance of Orissa Power Generation Corporation Limited using DEA-SBM. Research Bulletin, 43(2), 97–109. https://doi.org/10.33516/rb.v43i2.97-109p

Issue

Volume 43, Issue 2, July 2017

Section

Articles
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Europe PMC

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