DEA based estimation of the technical efficiency of state transport undertakings in India.pdfVIP
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DEA based estimation of the technical efficiency of state transport undertakings in India
TECHNICAL NOTE
DEA based estimation of the technical efficiency of state
transport undertakings in India
Shivi Agarwal Shiv Prasad Yadav S. P. Singh
Accepted: 29 May 2009 /Published online: 1 February 2011
# Operational Research Society of India 2011
Abstract This paper 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 35 STUs for the year 2004-2005. Technical efficiency of the STUs is
measured by applyingData Envelopment Analysis (DEA) technique with the use of four
input and three output variables. Fleet size, Total staff, Fuel consumption and Accident
per lakh kilometer are considered as inputs and Bus utilization, Passenger kilometers
and Load factor as outputs. On the basis of the status of technical efficiency, it is
concluded that the performance of the STUs are good but still very far from the optimal
level. The mean overall technical efficiency (OTE) is 83.26% which indicates that an
average STU has the scope of producing the same output with the inputs 16.74% lesser
than their existing level. Significant variation in OTE across STUs is also observed.
Keywords DEA . Efficiency . Transport
1 Introduction
Transport sector plays a significant role in the overall development of a nation’s
economy. Road transport is the prime motorized mode of transport linking the
remote and hilly areas with rest of the country. The State Transport Undertakings
OPSEARCH (July–Sept 2010) 47(3):216–230
DOI 10.1007/s12597-011-0035-4
S. Agarwal
Department of Mathematics, BITS, Pilani -333031, India
e-mail: shividma@
S. P. Yadav (*)
Department of Mathematics, IIT, Roorkee 247667, India
e-mail: yadavfma@iitr.ernet.in
S. P. Singh
Department of Humanities and Social Sciences, IIT, Roorkee 247667, India
e-mail: singhfhs@iitr.ernet.in
(STUs), controlled by the respective state govern
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