Damodar Valley Corporation, which operates in the Damodar River region, is best described as which of the following types of organisations in the Indian administrative system?

Introduction / Context:

The Damodar Valley Corporation, commonly known as DVC, is an important multi purpose organisation in eastern India that deals with power generation, flood control and irrigation in the Damodar River basin. Understanding its legal nature helps in appreciating how large infrastructure and river valley projects are organised in the country. This question asks you to correctly identify the type of organisation DVC is under Indian public administration.

Given Data / Assumptions:

• The organisation in focus is Damodar Valley Corporation.
• The geographical area is the Damodar Valley region.
• The options include different types of bodies such as statutory bodies, municipal corporations, private enterprises and non government organisations.
• The question expects you to know under what kind of law or statute DVC was created.

Concept / Approach:

DVC was created by a specific Act of Parliament to carry out river valley development functions. Bodies that are established by a special Act passed by the legislature are called statutory bodies because their powers, functions and structure are defined in that statute. DVC is not a municipal corporation, which is a city level local body, nor is it a private company or a non government organisation. Its multi state, multi purpose role and its creation by a dedicated law make it a classic example of a statutory corporation.

Step-by-Step Solution:

Verification / Alternative check:

Standard public administration and Indian economy textbooks list DVC along with other statutory corporations like the Life Insurance Corporation and Oil and Natural Gas Corporation in discussions on public sector undertakings. They emphasise that DVC was created as a river valley corporation under a special law and not as a municipal or private entity. This classification clearly supports the choice statutory body.

Why Other Options Are Wrong:

A municipal corporation is a local government body for a city or town and has jurisdiction primarily over urban civic services, not an entire river basin across states.

A private enterprise located in Bihar would be owned and managed by private shareholders, whereas DVC is a public sector body created by law.

A non government organisation is a voluntary association outside the formal government structure, which again does not match the legal and administrative nature of DVC.

A departmental undertaking within a ministry remains part of the ministry itself without separate legal identity, but DVC is separate and is governed by its establishing statute.

Common Pitfalls:

Candidates sometimes confuse statutory bodies with government departments or public sector companies. The key distinction is that statutory bodies are created by a specific Act of the legislature, which defines their powers and structure. Departments are part of a ministry, while companies are incorporated under company law. DVC falls clearly in the statutory body category, and remembering this will help in similar questions about large public sector organisations.

Final Answer:

Damodar Valley Corporation is best described as a Statutory body.