1.Effective control of Parliament : These under-takings ensure effective control over their operations by the Parliament. Annual reports of the undertakings are laid on the table of both the houses of the Parliament. Hence, Parliament can effectively ensure the efficiency of these undertakings.
2.Public accountability : These undertakings are established for some specific work of the ministry. Sometimes government reviews the working of these undertakings through government audit. Hence, they provide a high degree of public accountability is deposited directly into the government treasury. Hence, their revenue is an important source of income for the government.
4. National security : These enterprises works under the direct control and supervision of the concerned ministry. Hence, there is no danger to the national security.