Ending weeks of speculation, Reddy who quit the Congress on February 19, said the policies and programmes of the new party would be unveiled at a public meeting at Rajahmundry in coastal Andhra on March 12.
"Together we are starting a new party for upholding the prestige and dignity of Telugu people which was hurt very badly by the way they divided the State.
"They violated the conventions and procedures...insulting to Telugu people...That's the reason we are starting a new party to uphold the dignity and prestige of Telugu people...," said Reddy, who was flanked by some MPs who were expelled earlier from Congress for moving a no-confidence motion against the UPA government.
Indicating that he was looking forward to poll battle in Seemandhra region, the former chief minister sought to target TDP and YSR Congress Party, which are projected to be front runners in the residuary Andhra Pradesh (Seemandhra) by some opinion polls.
TDP Chief N Chandrababu Naidu, who was chief minister for nine long years and has been opposition leader in the Assembly for 10 years, could not express his views for keeping the State united and "it's disgraceful", alleged Reddy.
He charged Jagan Mohan Reddy-led YSR Congress with actually seeking division of Andhra Pradesh though posturing that they were in favour of united state for the sake of CM's post (in Seemandhra).