The State Transport Authority has been constituted by the State Government under the Motor Vehicles Act, 1988 to exercise powers and discharge functions as indicated below:-

• To co-ordinate and regulate activities and policies of the Regional Transport Authorities of the State.
• To perform the duties of a Regional Transport Authority where there is no such Authority and, if it thinks fit or if so required by a Regional Transport Authority to perform those duties in respect of any route common to two or more regions.
• To settle all disputes and decide all matters on which difference of opinion arises between Regional Transport Authorities. 
• To discharge such other functions as may be prescribed. 

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. 

State Transport Authority and all Regional Transport Authorities give effect to any directions issued under Section-67 of MV Act, 1988 by the State Government by notifications in the official Gazette regarding:

• Fixing of fares and freights (including the maximum and minimum in respect thereof) for stage carriages, contract carriages and goods carriages.
• Prohibition or restriction, subject to such conditions, as may be specified in the directions of the conveying of long distance goods traffic generally or of specified classes of goods by goods carriages.
• Any matter which may appear to the State Government necessary or expedient for giving effect to any agreement entered into with the Central Government/any other State Government/Government of any other country relating to regulation of motor transport and conveying of long distance goods traffic.