Chennai: Even as the SEZ controversy continues to rage, union minister of communications and IT Dayanidhi Maran said bigger players are now coming in setting up SEZs.

Addressing the media after inaugurating the Chennai development centre of MindTree Consulting Private Limited here on 18 October, 2006, he upheld Tamil Nadu as an example for the smooth setting up of SEZs. Citing the example of the Nokia SEZ, he said, Nokia had already started making around two million handsets at its Chennai plant. "Next month the Flextronics SEZ will be inaugurated."

Asked about his ministry's stand on extending the tax incentives beyond 2009 for the units located in Software Technology Parks of India (STPI), Maran said, "I support the industry's demand for extending incentives beyond 2009."

He also said the policy on the semiconductor industry was pending with the finance ministry. "We have sent our note to the finance ministry," he said.

The finance minister, in his budget speech in March this year had mentioned about the policy for semi conductor industry. The IT ministry has sent its recommendations on tax incentives to be offered to the investors. However the finance ministry is of the opinion that the incentives offered are too high and not commensurate with the investments to be made by the investors.