Departmental undertakings have certain advantages which are as follows:
These undertakings facilitate the Parliament to exercise effective control over their operations.
These ensure a high degree of public accountability.
The limitations of departmental undertaking are:
Departmental undertakings fail to provide flexibility, which is essential for the smooth operation of business.
The employees or heads of departments of such undertakings are not allowed to take independent decisions, without the approval of the ministry concerned. This leads to delays, in matters where prompt decisions are required.
