Bengaluru, Dec 25 (IANS): Breaking the suspense over his future plans, mining baron and former BJP leader Gali Janardhana Reddy, Sunday launched his political party, 'Kalyana Rajya Pragati Paksha'.

Describing the move as a new political episode, Reddy said he plans to serve the people of Kalyana Karnataka region comprising seven districts of the state.

Coming ahead of the Karnataka Assembly elections, the development could have a serious impact on the ruling BJP's plans to return to power in the crucial south Indian state.

"It is not possible for political parties to gain dividends by dividing the state's people as the people have always remained united," he said.

The Assembly elections in Karnataka are scheduled for the first half of 2023 and most likely to be held in April-May.

Reddy, who was instrumental in the BJP's breakthrough performance in the Ballari region, stated that he would contest from Gangavati constituency in the forthcoming Assembly polls in the state.

The saffron party, which once groomed Reddy brothers to take shape as the force in the state as well as the undivided Andhra Pradesh state has been maintaining distance after Janardhana Reddy was embroiled in the mining scam. He was also jailed and restrictions imposed on his entry to his home district Ballari.

With Janardhana Reddy launching his political outfit, BJP's chances of winning in at least 20 Assembly seats would be affected, political observers feel.