Question

State three features of a departmental undertaking.

Answer 1

Three features of a departmental undertaking are as follows:

1. Part of the Government: Departmental Undertaking is a part of the government and is organised as a unit of the concerned ministry. For example, Ministry of Railways is accountable for the working of Diesel Locomotive Work (DLW).

2. Government financing: Since the government fully owns a departmental undertaking, the concerned ministry is responsible for financing it from the budget allocated to it. Its surpluses are also part of the concerned budget.

3. Accounting and audit: Departmental Undertakings are subject to same accounting and audit rule pattern which are relevant for other government department.