Efficiency Measurement of State Transport Undertakings in India: An Application of DEA Methodologies

This article measures the technical efficiency of public transport sector in India. The study makes an attempt to provide an overview of the general status of the state transport undertakings (STUs) in terms of their productive efficiency. Data have been collected for 29 STUs for the year 2019–20. Technical efficiency of the STUs is measured by applying data envelopment analysis (DEA) technique with the use of five input and four output variables. Fleet size, total staff, fuel consumption breakdown and accident per lakh kilometre are considered as inputs and bus utilisation, passenger kilometres, load factor and passenger lead as outputs. On the basis of the status of technical efficiency, it is concluded that the performance of the STUs is good but still very far from the optimal level. The mean Charnes–Cooper–Rhodes (CCR) technical efficiency is 89.5 per cent and Banker, Charnes and Cooper (BCC) technical efficiency is 92.9 per cent. The CCR mean score implies STUs have the scope of producing the same output with the inputs 10.5 per cent lesser than their existing level, whereas that of BCC mean score implies 7.1 per cent. JEL Codes: 61, R41