Aparajitha,
To start there is no specific reason for using C instead of C++. However it is basic language and is mostly used based on requirement.
The present requirement is basically in the field of embedded system and VLSI design which is completely harware related and C is the preferred language for programming in this field..C++ is basically used in oops based application. However there are many OOPS based languages which are more user-friendly which created competition for C++..
This maybe a guess but in really languages are preferred based on the features available in them..some applications maynot need complicated and complex programming features which need expertize and investment..in such case basic programming like C is sufficient to do in any easy way...
Hope you understand what i want to say...