Amid scenes of celebrations by his fans, the 53-year-old matinee idol made the announcement at his new party office in Jubilee Hills here, ending a year-long speculation over his political plans.

"It was Kalam's counsel that inspired me to take the final decision. I would have committed a historic blunder had I not entered politics," the mega star told the media.

Chiranjeevi, a Padma Bhushan awardee who has acted in 148 films, declared that he has no rivals in politics but said people were yearning for a change.

Like US democratic presidential candidate Barack Obama, change appeared to be the political mantra for Chiranjeevi to bring success at the hustings.

Asserting that there was a political vacuum in the state, he said his party would be different in its approach to the people's problems.

"I have no rivals in politics. My enemies are poverty and backwardness. I will pursue positive politics focused on the poor," he said.

While dodging ticklish issues like separate Telangana statehood demand and naxalism, Chiranjeevi said his party will take a collective decisions on such "sensitive issues".