Rao, who had earlier sent his resignation from the US to Lok Sabha Speaker after the Congress Working Committee decision to carve out a separate state, today sent a letter to party President Sonia Gandhi asking her to accept his resignation from the primary membership of Congress party.
His resignation from the Lok Sabha is yet to be accepted.
Rao also accused the Congress of doing injustice to Telugus and warned that a slew of resignations would follow, against the backdrop of the Union Cabinet approving the creation of Telangana.
"Modi is attracting students and youth. With Modi on their side, BJP may come out in flying colours in Seemandhra region," he told reporters here.
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The four time MP from Guntur asserted that BJP would improve its vote share in his constituency, where the (BJP) party polled 75,000 votes during the last Lok Sabha elections. However, he refused to comment whether he would join the BJP.
"Four Union Ministers, besides MPs of Congress have offered to resign. I hope that State Ministers in Andhra Pradesh would follow suit," he said.
Rao held that the decision to carve out the new State was taken by Congress with a hope that it could win 10 to 12 seats in Telangana with the support of TRS.
The Congress leader claimed the party will face a rout in the state due to the decision on Telangana.