The SEZ Act, which stands for Special Economic Zones Act, was introduced in the year 2005.

Explanation:
- The Special Economic Zones Act, 2005, was enacted by the Parliament of India on June 23, 2005.

Overview of SEZ Act:
- The SEZ Act is a legislation that provides for the establishment, development, and management of Special Economic Zones (SEZs) in India.
- SEZs are designated areas within a country that are subject to special economic regulations and incentives to attract domestic and foreign investments, promote exports, and boost economic growth.
- The SEZ Act was introduced with the aim of creating a conducive environment for businesses and industries to flourish, facilitate export-oriented growth, generate employment opportunities, and attract foreign direct investment (FDI).

Key provisions of the SEZ Act:
1. Establishment of SEZs:
- The Act provides for the establishment of SEZs by the Central Government, State Governments, or any person or organization authorized by the Central Government.
- SEZs can be set up in any part of the country, including existing industrial areas or outside them.

2. Approval and operation:
- The Act lays down the procedure for obtaining approval for setting up an SEZ.
- It also defines the rights, obligations, and incentives available to the SEZ developers and units operating within the SEZs.

3. Fiscal incentives and benefits:
- SEZs are granted various fiscal incentives and benefits to promote investment and exports.
- These include tax exemptions, duty-free import of capital goods and raw materials, and simplified procedures for customs clearance.

4. Single-window clearance:
- The Act establishes a single-window clearance mechanism for obtaining various approvals, licenses, and permits required for setting up and operating an SEZ.

5. Dispute resolution:
- The Act provides for the establishment of an SEZ Tribunal to adjudicate disputes related to SEZs.

Impact and significance of the SEZ Act:
- The SEZ Act has played a crucial role in attracting investments, promoting exports, and creating job opportunities in India.
- SEZs have emerged as major contributors to the country's economic growth, with several industries and businesses setting up operations in these zones.
- The Act has also helped in technology transfer, skill development, and infrastructure development in and around the SEZs.

Conclusion:
The SEZ Act was introduced in the year 2005 with the objective of creating a favorable environment for businesses and industries to thrive, stimulate exports, attract investments, and boost economic growth. The Act has been instrumental in the establishment and operation of Special Economic Zones in India, contributing significantly to the country's overall development.