Title: Demerger of Indian Railways: Efficiency Impact Evaluation

Author (s):: Kanoujiya J.; Gupta R.; Rastogi S.

Journal: SCMS Journal of Indian Management

Month and Year: October 2022

Abstract: The rail sector of India went for demerger in 2003. After 17 years, it is high time to analyse the efficacy of that decision. This study evaluates the efficiency impacts of this decision using data envelope analysis (DEA) and ranks the zonal railways based on the Malmquist Productivity Index (MPI). Using the zone-level data for the period 2004- 2017, this study traces efficiency gains for the passenger and freight business of Indian Railways. The inputs and outputs used in the study are selected such that no systemic bias due to specific operational characteristics pollutes the results. The findings of the paper bring out the pre and post demerger efficiency and productivity estimates. We found that demerger has an adverse impact on the efficiency and productivity of Indian railways, with new zones being less efficient than the older ones. The policy implications of this finding are important for rail organisations worldwide. © 2022 SCMS Group of Educational Institutions. All rights reserved.

Document Type: Article

DOI: https://doi.org/