Question

Differentiate between Departmental undertaking and Public corporation

Answer 1

$\begin{array}{cccc}\text{S.No}& \text{Basic of Difference}& \text{Departmental Undertaking}& \text{Public Corporation}\\ \text{1.}& \text{Formation}& \text{Formed as a part of the ministry.}& \text{Formed under a special act of parliment}\\ & & & \text{or State Legislature.}\\ \text{2.}& \text{Legal Status}& \text{No separate legal entity from government.}& \text{Enjoys separate legal entity. Initially}\\ & & & \text{by the government.}\\ \text{3.}& \text{Source of capital}& \text{From government budgetary}& \text{Government can issue debentures, state}\\ & & \text{allocation.}& \text{loans also.}\\ \text{4.}& \text{Management}& \text{Managed by government officials}& \text{Managed by Board of Directors}\\ & & \text{of concerned ministry.}& \text{nominated by the government.}\\ \text{5.}& \text{Public accountability}& \text{Accountable to government.}& \text{Accountable to the Parliament.}\end{array}$