Question

IS. Post and 'Telegraph Department* and *Engineers India Limited' are two different kinds of public sector undertakings. According to you how these two types of organisations differ on the basis of:
(a) Management and Control
(b) Availing business opportunities
(c) Revenue sharing
(d) CAG Audit
(e) Appointment and status of employees

Answer 1

(a) Management and control: Departmental undertaking is managed by officials of the ministry while government company is managed by the Board of directors appointed mostly by the government.

(b) Availing business opportunities: A government company avails more business opportunities compared to a departmental undertaking.

(c) Revenue sharing: Revenues of a government company is shared with the government and private shareholders but the revenue from the departmental undertaking goes to the government treasury.

(d) CAG audit: The Comptroller and Auditor General of India audits the statutory corporation whereas audit process of a departmental undertaking is the same as government departments.

(e) Appointment and status of employees: The departmental undertakings are managed by the civil servants, who are treated just like the civil servants themselves. Recruitment of a government company is as per company rules and not appointed by the government itself. The employees are not civil servants.