Departmental Undertaking:
Departmental Undertaking is the oldest and traditional form of organizing public sector enterprises. It refers to the government departments that engage in commercial activities to provide goods and services to the public. In this form of organization, the government directly controls and manages the enterprise through its respective department.

Explanation:
Departmental Undertaking is a form of organization where the government directly manages and controls public sector enterprises through its departments. It is the oldest and traditional form of organizing these enterprises. Let's understand the characteristics and features of departmental undertakings:

1. Direct Government Control:
In departmental undertakings, the government exercises direct control and management over the enterprise. The department responsible for the enterprise oversees its operations, decision-making, and financial management.

2. Integration with Government Department:
The enterprise is integrated with a specific government department or ministry. The department provides the necessary support, resources, and guidance to ensure the smooth functioning of the enterprise.

3. Government Funding:
Departmental undertakings are funded by the government. The required capital and operating expenses are provided by the government through the budgetary allocation.

4. No Separate Legal Entity:
Unlike other forms of organization like statutory corporations or government companies, departmental undertakings do not have a separate legal entity. They operate as a part of the government department and are subject to the same rules and regulations.

5. Limited Autonomy:
Departmental undertakings have limited autonomy in decision-making. The government department exercises control over major decisions, policies, and strategies of the enterprise.

6. Objective of Public Service:
The primary objective of departmental undertakings is to provide goods and services to the public. Profit-making is not the main focus, but rather the provision of essential services and meeting public needs.

Examples:
Examples of departmental undertakings include government departments like postal services, railways, defense organizations, and public healthcare institutions. These enterprises are directly managed by the respective departments and operate in the public interest.

Overall, departmental undertakings are the oldest and traditional form of organizing public sector enterprises, where the government exercises direct control and management through its departments.