Analysis of Indian Coal Industry’s Technological Progress

By : Debasish Basak

Page No: 204-211

Abstract
In this paper, the Total Factor Productivity Growth (TFPG) rate has been calculated for Indian coal industry to judge its technological progress using Solow Residual method. As it is known that the Solow Residual has a direct interpretation as a measure of technical change on aggregate basis. A translog variable cost function is used for variable cost model of Indian coal industry. The total variable cost is decreasing by 1.8 per cent annually. Solow residuals of past 10 years are calculated and it has been found that the average percentage of technical growth is near about 1.4 per cent under ideal conditions.

Authors :
Rajiv Kumar : Project Trainee at CSIR-Central Institute of Mining and Fuel Research, Dhanbad and persuing M. Tech in Industrial Engineering and Management at Indian School of Mines.
Chandan Bhar : Professor at Dept. of Management Studies, Indian School of Mines.
Debasish Basak : Sr. Principal Scientist at CSIR-Central Institute of Mining and Fuel Research, Dhanbad.