Rao is planning to float his party with a massive rally in Siddipet next month.
Efforts are on to mobilize people from the entire region.
He will then tour various districts to revive the movement for carving a Telangana state out of several districts of Anmdhra Pradesh, according to TDP sources. Representing Siddipet constituency in the backward Medak district, Rao has been campaigning since August 2000 to form a new party. After eight months of suspense, he finally decided to leave TDP and float a new party to fight for the cause of a Telangana state. Rao, a minister in the earlier cabinet, was not considered for the ministerial berth when TDP retained power in the 1999 elections. Once considered close to Naidu, he was not happy at being dropped but remained silent till August last year when he openly revolted against Naidu for effecting a steep hike in power tariff.