DEPARTMENTAL

UNDERTAKINGS
MEANING AND CHARACTERISTICS



MEANING
DEPARTMENT
UNDERTAKINGS
Compartment,
separate
under control of
DEPARTMENTAL ENTERPRISES ARE-----
A form of government enterprises
Which functions under the control of
Separate ministry of the government.

EXAMPLES: Railways,Defence,Post & Telegraph etc.
CHARACTERISTICS
Form of govt.
enterprises
Part of govt.
enterprises
Control of one
ministry
Funds from govt.
treasury
Revenues into govt.
treasury
Operated by civil
servants
Service motive
ELABORATION
1) Part of the govt.--one of the various ways through which government
conducts its activities.
2) Control of one ministry--a separate ministry is set up to manage the
operations of the undertaking.the central govt does not have direct
intervention in its functioning.e.g.Railways.
3)Funds from govt. treasuryrequired amount of funds are provided from
the govt. treasury,after parliamentary approval.e.g.Defence
4) Revenues into govt.treasuryall their earnings are deposited into the
govt. treasury.they are thus a source of revenues for the state.
5) Service motiveas they part of govt.enterprises they are bound to
function for state welfare,more for service than for profit.
6) Operated by civil servantsrecruitment is done through separate
exams for which they have recruitment boards, or other public
examinations.their employees are known to be civil servants.


RECAPITULATION
1) What is meant by departmental undertakings?

2) What are the features inherent to a Departmental
undertaking as it is a part of Govt. enterprises?

3) Give an example of departmental undertaking of the
Govt. of India, also state the grounds upon which you
classify it as a Departmental undertaking.

4) How are the employees of a Govt. enterprises recruited?



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