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Yadav, an OBC (Other Backward Classes) face of the party, will replace Dinesh Sharma, who was recently appointed Deputy Chief Minister of Uttar Pradesh.
Yadav's appointment is being seen as party's efforts to woo the OBC community after young Patidar leader Hardik Patel spearheaded a campaign for reservation to the community.
Assembly elections in Gujarat are due later this year.
Later, Yadav thanked Prime Minister Narendra Modi and party chief Shah for his appointment and vowed to work tirelessly for the party.
"With inspiration from the BJP leadership, I will continue to work for the party with devotion," Yadav said.
Yadav, a Rajya Sabha member from Rajasthan, has previously worked as party's in-charge in Bihar.