Economic Efficiency Measurement of Power Sector Reforms in Haryana Using DEA

Abstract

Haryana power sector reforms were initiated as a part of the overall power sector reform process initiated in the country under the supervision of the World Bank. Haryana became the second state in the country that implemented the restructuring process at the state level after Orissa. Enhancing efficiency, productivity and quality are the goals behind these reforms. This article attempts to measure the economic efficiency of the power sector reforms in Haryana. A non-parametric technique—data envelopment analysis (DEA)—is used to measure the economic efficiency in the pre- and post-reform period of power sector reforms. Also, the specification of input and output has been carried out and an input-oriented approach has been selected. the result reveals that the power sector reforms have significantly improved efficiency in input utilisation, but as far as scale efficiency is concerned, the power sector has measurable failures on this front. The power sector in Haryana still operates with inappropriate size of scale. Therefore, a well-calibrated and robust permanent policy needs to be formulated to achieve the objectives of the power sector reforms.