Explain merits of departmental undertaking
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Achievement of Objectives: Departmental undertaking is in the direct and complete government control over them which makes it easy to achieve its economic, political and social objectives. ... This form was favourably chosen for those activities that were either yielding revenue to the government, eg., ordinance factories.
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Advantages
1. Provides easy information. It is easy to set up departmental undertaking.
2. Direct control over Parliament or State Legislature.
3. Tax on the Public is lesser.
4. Tool for social change.
5. Avoid misuse of Government Treasury.
6. Monitored by the rules and regulations of the Ministry.
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