Question

"Indian Railway Vis a part of Railway Ministry. It is organised, financed and controlled by Railway Ministry. The finances are allocated from government treasury and what ever revenue it earns is deposited to government treasury only. It is treated as a part of government and even the appointment, recruitment and selection of employees is done in the same way as that of civil servant.
(a) Name the type of public sector enterprise railway is considered as.
(b) What is the status of employees working in railways?
(c) How does it get its finance?
(d) What does it do with its revenue?

Answer 1

(a) Departmental Undertakings

(b) Since the Indian Railway is a departmental undertaking, all its employees are Government servants. They are headed by IAS officers and civil servants. Their recruitment and conditions of service are the same as that of government employees.

(c) The funding of these enterprises comes directly from the government treasury. The funding is an appropriation from the budget of the government.

(d) The revenue earned by the Railways is also deposited into the treasury. Thus, its revenue is a source of income for the government.