Sanjay Nayak, MD & CEO of Tejas Networks, while talking about the telecom Production Linked Incentive (PLI) scheme on Friday said that the research and development (R&D) expenditure cap should be raised to 50 percent from 15 percent.

The Department of Telecommunications (DoT) on Thursday issued operational guidelines for the Rs 12,195-crore PLI scheme for the telecom sector. The registration process for the scheme will begin on Friday and remain open for 30 days till July 3, DoT said in a statement.

Speaking in an interview with CNBC-TV18, Nayak said, "The rate of change of technology in telecom is quite fast, so a significant amount of investment is needed in R&D. Therefore, the 15 percent limit seems low. It should go to at least 50 percent, if not more."

"We are studying the policy and there is a high likelihood that we will be applying for it," he said.

(Edited by : Priyanka Rathi)