Downloads: 1
Research Paper | Commerce and Economic Studies | Volume 15 Issue 3, March 2026 | Pages: 1553 - 1563 | India
Measurement of Change in Technical Efficiency, Scale Efficiency and Productivity Growth of DISCOMs in Karnataka Using DEA and Malmquist Productivity Index: Evaluating Reforms' Outcomes
Abstract: The performance of electricity distribution companies (DISCOMs) is vital for ensuring reliable, affordable, and sustainable power supply, which underpins socio-economic development. This study evaluates the efficiency and productivity of five Karnataka DISCOMs- BESCOM, CESCOM, GESCOM, HESCOM, and MESCOM- over the period 2009-10 to 2024-25 in the context of power sector reforms. Data Envelopment Analysis (DEA), using both CCR and BCC models, is applied to estimate technical and scale efficiency, while the Malmquist Productivity Index (MPI) is employed to examine productivity changes over time. The analysis considers power purchase cost, employee cost, and interest cost as input variables, electricity sales and revenue as desirable output, and AT&C losses as an undesirable variable reflecting operational inefficiencies. The results reveal notable variation in efficiency across DISCOMs and years. BESCOM and MESCOM consistently perform closer to the efficiency frontier, whereas CESCOM, GESCOM, and HESCOM show relatively lower and more volatile efficiency levels. Scale inefficiency emerges as a key source of overall inefficiency, indicating suboptimal operational size. MPI findings suggest that productivity changes are inconsistent and largely driven by technological factors rather than managerial improvements. The study underscores the importance of reducing AT&C losses, optimizing costs, and enhancing operational scale to improve overall performance and financial sustainability.
Keywords: Electricity Distribution Efficiency, Power Sector Reforms, Technical Productivity Analysis, AT&C Loss Reduction, Financial Sustainability
How to Cite?: Dr. Mallikarjun Maradi, Parashuram Devi, "Measurement of Change in Technical Efficiency, Scale Efficiency and Productivity Growth of DISCOMs in Karnataka Using DEA and Malmquist Productivity Index: Evaluating Reforms' Outcomes", Volume 15 Issue 3, March 2026, International Journal of Science and Research (IJSR), Pages: 1553-1563, https://www.ijsr.net/getabstract.php?paperid=SR26324171951, DOI: https://dx.dx.doi.org/10.21275/SR26324171951