"The Jan Vikalp Morcha will contest the elections on 'tractor' symbol of the All India Hindustan Congress Party," he said in Ahmedabad.
He further said that his party believed in placing candidates on merits "unlike others who are doing horse trading."
The former Congress leader also announced that his party would not raise fund from the corporate houses.
"We won't take funds from Ambani and Adani. If our government is formed, we'll provide Rs. 5,000 pension to widow," he added.
In September, Vaghela joined the 'Jan Vikalp Morcha', a party formed by his supporters.