1. Formation: These enterprises are established as departments of the ministry and are considered part or an extension of the ministry itself.
2. Control: The administration of these undertakings is directly under the control of concerned ministry or minister.
3. Capital: The required capital is provided by the government in the annual budget.
4. Income: The income of these departments should be deposited daily into government treasury.
5. Management: The employees of the enterprise are government servants and they are headed by Indian Administrative Service (IAS) officers and civil servants who are transferable from one ministry to another.
