Pawan, who is Union Minister and Congress leader K Chiranjeevi's youngest brother, launched "Jana Sena" at a closed-door event here this evening.
"This is a Sena of the common people and of the country," he said in an emotion-charged tone.
Jana Sena, meaning people's army, has a six-pointed star inside a circle as its emblem, symbolising among other things a "revolution".
Pawan has acted in many blockbuster movies in Telugu and carved out an image for himself.
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A few years later, Chiranjeevi merged his outfit with Congress and got elected to Rajya Sabha.
There have been reports that all was not well between the star-brothers ever since Chiranjeevi merged his PRP with Congress as Pawan was totally opposed to it.
In the last few years, however, Pawan focused only on films. His recent hits like 'Gabbar Singh' (a remake of Hindi movie 'Dabbang') revived his career and placed him in the top league of Telugu film industry.
In 2007, following a skirmish in the family, Pawan announced he would launch a "common man's protection force" to address the concerns of people and earmarked Rs one crore from his personal funds.
But CPF remained a non-starter and subsequently Pawan played a key role in the formation of PRP.
Star, which will be Jana Sena's emblem, will have a white background that signifies peace and stability while red colour signifies revolution.