Diff between Departmental Undertaking & Statutory Corporation
The following are some of the points of distinction between departmental undertaking and statutory corporation.
| Point of Distinction | Departmental Undertaking | Statutory Corportation |
|---|---|---|
| 1. Status | Does not have a separate legal entity. | It is a Separate entity. |
| 2. Establishment | It is established by a Ministry. | It is established by a Special Act of Parliament. |
| 3. Funds | Funds are Provided annually by budget appropriation. | It can raise its own resources. |
| 4. Authority to control | Rests in the hands of the Minister and the concemed Ministry | Parliament has the authority to control the affairs. |
| 5. Management | Managed by government officials and the ministry. | Managed by the Board of Directors |
| 6. Power to borrow | Does not have borrowing power. | Possesses borrowing power. |
| 7. Employees | Employees are govemment servants and service rules are those applicable to government employees. | Employees are recruited by the Corporation. The employees are not government servants. |
| 8. Autonomy | Limited | Considerable |
| 9. Flexibility | Limited | Substantial |
| 10. Suitability | Suitable in industries which are basically monopolies. For e.g. defence, public utilities etc. | Suitable for industrial and commercial undertakings. |
The above are some of the differences between departmental undertaking and statutory corporation.
