"The government companies can be formed easily and it is relatively free from bureaucratic
control and political interference”. Elaborate the statement in context to the utilities of government companies.
Utilities or advantages of a government company are as follows
(i) Easy to’ Form It can easily be formed as no separate statute has to he passed in the Parliament or State Legislature to create.
(ii) Enjoys Greater Autonomy It is relatively free from bureaucratic control and political
interference in its day-fo-day functioning. It is a separate entity and autonomous body. Thus, quick action and flexibility of operations are possible.
(iii) Curb Unhealthy Business Practices Government companies provide goods and services at reasonable prices and are able to control the market. Thus, help in curbing unfair practices adopted hy other market players.
(iv) Collaboration It is the only form of organisation by which the government can avail of the management skill, technical know-how and expertise of the private sector and foreign countries.