The maximum permissible speed is the highest speed permitted for a train on a particular section, and is not to be exceeded under any circumstances. A train needs to run at this speed only to make up for lost time. Most of the zonal railways fix the difference between max. perm. speed and booked speed as 10% although NR fixes this as 12-1/2 %. Note that technically the maximum permissible speed is not a property of the track alone, but also depends on the locomotive(s) and the load being hauled; i.e., the max. permissible speed can be different for different trains on the same section of track.
Source - IFRCA.org
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