The main differences between a departmental undertaking and a Government company are:
1. A departmental undertaking does not enjoy autonomy, whereas a Government company has some autonomy.
2. A departmental organisation is liable to political interference, whereas a government company is comparatively free for political interference.
3. A departmental organisation does not enjoy flexibility. But a Government company has enough flexibility.
4. A departmental undertaking has more public accountability than a government company.
5. A departmental undertaking is not run on commercial principles, whereas a Government company is run purely on commercial principles.
6. A departmental undertaking is an old form of state enterprise, whereas a Government company is a modern form of state enterprise.
7. A departmental undertaking is not brought into existence under any act, whereas a Government company is brought into existence under the companies Act.
8. A departmental undertaking does not provide for mixed ownership, whereas a Government company provides for mixed ownership.
9. A departmental undertaking does not have separate legal entity. But a Government company has separate legal entity.
