The Jana Sena chief, who led a march on the issue, asked the government to pay Rs 50,000 each to workers not getting work and Rs 5 lakh each to the kin of those who committed suicide.
Claiming that 36 workers have ended their lives due to the construction sector crisis, Kalyan said if the government failed to respond he would take the protest to state capital Amaravati. The government's failures had pushed around 30 lakh workers into crisis, he added.
The march, supported by the Telugu Desam Party (TDP), drew huge response. It was the first show of strength by Kalyan since the YSR Congress Party (YSRCP) stormed to power in May with 151 seats in 175-member Assembly. The Jana Sena could win only one seat. Kalyan lost both the seats he contested.
Slamming the YSRCP for wrong policies, he said it should ponder why people had started protesting within six months of its coming to power. If Chief Minister Jagan Mohan Reddy could provide good governance, he would be happy to confine himself to acting in films.
Pawan lashed out at YSRCP leaders for targeting him and remarked that unlike them he is not in politics to amass wealth. "If leaders had acted with responsibility, there was no need for me to form Jana Sena," he said.
"Any party which comes to power makes a beginning with new constructions, but the YSRCP had begun with demolitions," he remarked in an obvious reference to demolitions being conducted in Amaravati, including a government building built next to the house of then Chief Minister Chandrababu Naidu.
Pawan also threatened to expose YSRCP leaders for making personal attacks. "I am not adopted son of Naidu. I am adopted son of people," he said reacting to YSRCP MP Vijaya Sai Reddy's comment.
The Jana Sena leader said he had not given up the demand for special status to Andhra Pradesh.
The Left parties, which had contested the elections in alliance with the Jana Sena, stayed away from the march as Kalyan had invited the BJP to the event.
( With inputs from IANS )