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They act through the officers of the Government and its employees are

Government employees.

These undertakings may be under the central or the state government and the rules

of central/state government are applicable.

Examples of these undertakings are railways and post and telegraph department

Features

The main characteristics of Departmental undertakings are as

Follows:

(i) The funding of these enterprises Come directly from the Government

Treasury and are an annual Appropriation from the budget of The

Government. The revenue Earned by these is also paid into the

treasury

(ii) They are subject to accounting and audit controls applicable to other

Government activities.

(iii) The employees of the enterprise are Government servants and their

recruitment and conditions of Service is the same as that of other

employees directly under the Government. They are headed by Indian

Administrative Service (IAS) Officers and civil servants who are

Transferable from one ministry to another.

(iv) It is generally considered to be a major subdivision of the Government

department and is Subject to direct control of the Ministry.
(v) They are accountable to the Ministry since their management is

directly under the concerned Ministry.