The first Indian Motor Vehicle Act was passed in 1914 with only 18 sectors that conferred power of local Government to regulate the use of Motor vehicles by way of registration and licensing and punishment. Thesecond M.V. Act was enacted with recommendation of Indian Railway Enquiry Committee headed by Wedge Wood in 1939. It laid the foundation for creation of STA and RTAs as administrative machineries to regulate control and enforce M.V. Act and Rules which functions till date. The functionaries of road transport have been reshaped, streamlined and improved with subsequent enactment of M.V. Act 1988. The recommendation of Transport Organization Committee under the Chairmanship of M.R. Mashani in 1959 led to the formal establishment oftotal administrative machinery of STA,Odisha under the Transport Commissioner during 1968-69. With well defined goals of protecting public interests and promoting best possible transport system, S.T.A. plays vital role in the State economic activities and touches all most all Section of the Community. It plays important role in the smooth movement of passengers and freight in Odisha and generates sizeable revenue and creates employment opportunities for a large number of people.
The State Transport Authority has been constituted by the State Government under the Motor Vehicles Act, 1988 to exercise powers and discharge functions.
State Transport Authority is headed by the Chairman who has judicial experience or an adjudicating authority competent to pass any order or take any decision under any law. Transport Commissioner, Odisha is appointed as the Chairman of the State Transport Authority, Odisha. State Transport Authority consists of not more than four members besides the Chairman as provided under sub-section(2) of Section-68 of the MV Act, 1988.