What is meant by Special Economic Zone (SEZ)? State the purpose and salient features of the Special Economic Zones Act, 2005.

Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. In order to give a long term and stable policy framework with minimum regulatory regime and to provide expeditious and single window clearance mechanism, the Government enacted Special Economic Zones Act, 2005. The salient features and purposes of the Special Economic Zones Act, 2005 are as under:- Matters relating to establishment of Special Economic Zone and for setting up of units therein, including requirements, obligations and entitlements; Matters relating to requirements for setting up of off-shore banking units and units in International Financial Service Center in Special Economic Zone, including fiscal regime governing the operation of such units; The fiscal regime for developers of Special Economic Zones and units set up therein; Single window clearance mechanism at the Zone level; Establishment of an Authority for each Special Economic Zone set up by the Central Government to impart greater administrative autonomy; and Designation of special courts and single enforcement agency to ensure speedy trial and investigation of notified offences committed in Special Economic Zones.