EFFICIENCY MEASUREMENT OF SAIL’S INTEGRATED STEEL PLANTS USING THE DATA ENVELOPMENT ANALYSIS MODEL

Abstract

This study evaluates the operational efficiency of five integrated steel plants under Steel Authority of India Limited (SAIL) using Data Envelopment Analysis (DEA). The output-oriented DEA model under Variable Returns to Scale (VRS) assesses the relative efficiency of Bhilai, Bokaro, Rourkela, Durgapur, and Burnpur steel plants from 2018-19 to 2022-23. Input variables include iron ore, coke rate, slag rate, and total metallic input, while output variables comprise sintering machine yield, productivity, blast furnace productivity, crude steel output, and mill yield. This study aims to evaluate the relative efficiency of five SAIL steel plants using DEA and identify best practices to improve their performance. The study focused on using secondary data from annual reports, sustainability reports, and operational records of each plant. The input and output variables are carefully selected to reflect the steel production process. The ANOVA test confirms significant differences in input variables across the plants.  DEA results reveal significant variations in efficiency scores among the plants. ISP Burnpur and Rourkela Steel Plant emerge as the most efficient plants, while Bhilai Steel Plant and Bokaro Steel Limited show scope for improvement.  The study demonstrates the effectiveness of DEA in evaluating the operational efficiency of SAIL's steel plants. The findings provide valuable insights for improving resource utilization, reducing input costs, and boosting productivity across SAIL's steel plants.