Explain the meaning and features of departmental undertaking.
Answers
Answer:
The departmental undertaking is the oldest and traditional form of an organization of the public sector enterprise.It is organized, financed and controlled in such a manner that any other government organization. The undertaking is under the control of a minister who is responsible to the parliament
Features of Departmental Undertaking
1. Audit and Accounting
Normal budgeting, accounting and audit procedures are applicable to departmental undertakings just like government departments.
2. Managed by Civil Servants
The departmental undertakings are managed by the civil servants, who are subject to the same services condition as applicable to civil servants of the government.
3. Sovereign Immunity
Without the consent of the government, a departmental undertaking cannot be sued at all.
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Explanation:
Departmental Undertakings are the common and more established form of establishing public enterprises. These enterprises are formed, operated, and part of the department of the ministry.
All the government works and activities are accomplished through this department, and cannot be entitled as independent or autonomous entities.
All the employees working in that department are under the government, therefore, they are termed as government employees. However, the government undertakings are divided into state and central government. Few examples of government undertakings are a railway, post office, etc.