Question

features/Characteristics of departmental undertakings? ​

Answer 1

Hello !

Departmental Undertaking

  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.

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.

Hope It Helps u :)

Answer 2

Answer:

Departmental Undertaking :

Features :

• The funding of these enterprises come directly the Government Treasury. The revenue earned by these enterprises is also Paid to Treasury.

• They are subject to audit and Accounting controls.

• The employees of the enterprise are govt. Servants and their recruitment and conditions are headed by Indian Administrative service and Civil servants.

• They are subject to direct control of ministry and management is directly under the control of ministry.

Merits :

• These undertakings facilitate the parliament to excersize effective control over their operations.

• These ensure a high degree of public accountability.

• The revenue earned by the enterprise goes directly to Treasury and hence is a source of income of government.

• It is suitable since it is under the direct control and supervision of the concerned Ministry.

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