| Departmental Organisatio | Statutory Corporation |
| Meaning | The organisation which is owned, managed, controlled, financed and operated by government is known as Departmental Organisation. | The company which is formed under a special Act of Parliament or State Legislature is known as Statutory Corporation. |
| Management | It is managed by government officials of the concerned ministry. | It is managed by board of directors nominated by government. |
| Legal Status | There is no separate legal status distinct from the government. | Statutory company has a separate legal status distinct from the government. |
| Borrowing Power | Departmental undertaking cannot borrow from public. It has to depend on budget allocated by the government. | Statutory Company can borrow from public by issue of shares and debentures. |
| Control | It is controlled by the concerned ministry. | It is controlled by government by the Act of Parliament or State Legislature. |
| Capital | Capital of departmental organisation comes from annual budget appropriations of the government. | Capital for statutory company comes from Central or State Government. |
| Formation | It is formed through Executive decision taken by the concerned ministry. | It is formed by passing a Special Act in the Parliament or in the State Legislature. |
| Suitability | It is suitable for defence and public utility undertakings such as infrastructure projects, e.g. Railways, Post & Telegraph, Defence, etc. | It is suitable for public utilities, development projects, service industry like banking and finance and other industrial and commercial undertakings e.g. UTI, LIC, RBI, ONGC, Air India etc. |
| Staff | Employees appointed are Government servants. They are subject to the same discipline and enjoy the same privileges as meant for civil servants. | Employees can be recruited independently. They are not civil servants. The corporation can have its own rule of recruitment and scale of remuneration. |
| Flexibility | It has low flexibility in its operation. | It has moderate flexibility in its operation. |
| Autonomy | It does not have autonomy in decision making. | It has autonomy in decision making. |
