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 per year that was mainly driven by the technical efficiency change component (4.2 percent).There is little variation in the productivity of small‐size plants when compared with medium and large‐size plants. The productivity of multivaried plants is comparatively lower than BHEL (Bharat Heavy Electricals Limited) make plants.

Originality/value

The impact of size, make and region on change in productivity is examined. This study recommends specific policies that can be implemented to increase the productivity of power plants. The study also provides a contemporary overview of Indian CFPPs that can aid energy planners and plant operators in the monitoring and detection of changes in productivity.

Citation

Singh, S.K., Bajpai, V.K. and Garg, T.K. (2013), "Measuring productivity change in Indian coal‐fired electricity generation: 2003‐2010", International Journal of Energy Sector Management, Vol. 7 No. 1, pp. 46-64. https://doi.org/10.1108/17506221311316470