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      Question

      Under the Defence Procurement Manual (DPM) 2025,

      liquidated damages (LD) are capped at what level, with a higher ceiling only for extreme delays?
      A 2% (5% in extreme cases) Correct Answer Incorrect Answer
      B 3% (6% in extreme cases) Correct Answer Incorrect Answer
      C 4% (8% in extreme cases) Correct Answer Incorrect Answer
      D 5% (10% in extreme cases) Correct Answer Incorrect Answer
      E 6% (12% in extreme cases) Correct Answer Incorrect Answer

      Solution

      DPM 2025 caps LD at 5%, allowing 10% only for extreme delays. The manual replaces DPM 2009, encourages participation of private players, MSMEs, start-ups, academia, and DPSUs, adds a chapter on innovation and indigenisation with IITs/IISc, and targets faster decisions and payments.

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