Q.Give any two features of Departmental Undertaking.

A departmental undertaking is a public enterprise run as a part (department) of the government itself; two key features are direct ministerial control (no separate legal entity) and full budgetary financing with revenue going to the treasury.

In the Tamil Nadu HSC Commerce syllabus, a departmental undertaking is studied as the earliest form of government (public) organisation. It is not set up as a separate company; instead it functions as one department of the government, like the Railways or the Post & Telegraph.

Key features (any two required):

• Direct government management: It is managed by a government department and is ultimately controlled by the concerned minister, who is answerable to the legislature. It has no separate legal existence apart from the government.
• Budgetary financing: It is financed by annual appropriations from the government budget, and all its revenue is paid directly into the government treasury.
• Government servants: Its employees are civil servants, appointed and governed by the usual government service rules. …