Which of the following is the oldest form of organising public sector enterprises?

Correct option is D

The oldest form of organizing public sector enterprises is the Departmental Undertaking. This form existed long before statutory corporations and government companies were conceptualized. Departmental undertakings function as an integral part of the government and are controlled directly by a ministry.
Examples include the Railways, Post & Telegraph Department, and earlier public utilities that were operated under government departments. This structure reflects maximum government control and minimal autonomy, which was historically the earliest method used for managing public enterprises in India as well as in other countries.
Thus, the correct answer is (d) Departmental Undertaking.
Information Booster
1. Departmental undertakings are financed through the annual budget of the government.
2. Their employees are considered government employees and follow government service rules.
3. This form ensures maximum public accountability but suffers from bureaucratic delays.
4. They are suitable for public utility services where national security or public interest is crucial.
5. Later forms like Government Companies and Statutory Corporations were introduced for greater autonomy and efficiency.
Additional Information
· (a) Statutory Corporation: Created through a special Act of Parliament or State Legislature; came much later (e.g., LIC, FCI).
· (b) Co-operative Societies: These are member-driven organizations, not specifically a form of public sector enterprise.
· (c) Government Company: Introduced under the Companies Act; a relatively modern form of managing public enterprises.