What do you mean by departmental undertaking

Dear Student
Departmental undertaking is the oldest form of public sector enterprises. The departmental undertaking is considered as one of the departments of government. It has no separate existence than government. It functions under the overall control of one ministry or department of government.
For Example- Railways, Defence, Post & Telegraphy, Broadcasting, Telephone services etc.
Features of departmental undertaking
  • They are not separate entity
  • They are financed from annual budgets from government
  • Revenues of this department are deposited in the treasury of government
  • The staff of this department are civil servants and are recruited and compensated as per the rules of civil servants.
  • They can be sued  also
  • These are easy to form

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Any industry etc established by a govt. department e.g. if an industry is established by railways department will be called departmental undertaking.
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