5 important Merits of Departmental Enterprises

1. Effective operation:

These organisations are very effective and useful both to the Government as well as public.

2. Profit centre:

These organisations are the most lucrative profit centers for the Government as they increase the scope of increasing and improving revenue for the Government.

3. Protection of public interests:

As there is constant audit and verification, the risk of misuse of public money is less in the Departmental Undertakings.

4. Loyalty:

The officials of the Departmental Enterprises will be honest, loyal and responsible because they enjoy the benefit of being permanent employees.

5. Increased efficiency and productivity:

Loyalty and honesty helps in boosting up the morale of workers and as a result there will be increase in the productivity and efficiency of the Government Departments.