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The Transport Department functions under the provisions of section 213 of the Motor Vehicle Act, 1988. The Transport Department is primarily established for enforcement of the provisions of the Motor Vehicle Act, 1988, Andhra Pradesh Motor Vehicles Taxation Act, 1963 and the rules framed there under. The major functions of the Transport Department are the Enforcement of the Motor Vehicles Act and Rules, Collection of taxes and fees and issuance of Driving Licences and Certificate of Fitness to Transport Vehicles; Registration of Motor Vehicles and granting regular and temporary permits to vehicles. The department also carries out road safety work by conducting awareness campaigns, pollution check of vehicles and enforce measures such booking speeding vehicles through laser guns and interceptor vehicles and detect drunken drivers through breath analysers.

The Transport Department is regulated by the Government of Andhra Pradesh in terms of policy formulation and its implementation.  The Department is administered by the Transport Commissioner who is the Head of the Transport Department.