LAPSE:2023.26535
Published Article

LAPSE:2023.26535
Performance Assessment Based on the Relative Efficiency of Indian Opencast Coal Mines Using Data Envelopment Analysis and Malmquist Productivity Index
April 3, 2023
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.
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.
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Keywords
coal mines efficiency, data envelopment analysis, Indian opencast mines, Malmquist productive index
Subject
Suggested Citation
Mahapatra B, Bhar C, Mondal S. Performance Assessment Based on the Relative Efficiency of Indian Opencast Coal Mines Using Data Envelopment Analysis and Malmquist Productivity Index. (2023). LAPSE:2023.26535
Author Affiliations
Mahapatra B: Department of Management Studies, Indian Institute of Technology (Indian School of Mines), Dhanbad 826004, India
Bhar C: Department of Management Studies, Indian Institute of Technology (Indian School of Mines), Dhanbad 826004, India
Mondal S: Department of Management Studies, Indian Institute of Technology (Indian School of Mines), Dhanbad 826004, India
Bhar C: Department of Management Studies, Indian Institute of Technology (Indian School of Mines), Dhanbad 826004, India
Mondal S: Department of Management Studies, Indian Institute of Technology (Indian School of Mines), Dhanbad 826004, India
Journal Name
Energies
Volume
13
Issue
18
Article Number
E4902
Year
2020
Publication Date
2020-09-18
ISSN
1996-1073
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Original Submission
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PII: en13184902, Publication Type: Journal Article
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