Yadav said he will turn 'Jan Kranti Adhikar Morcha', an outfit he had floated recently, into a political party and may give it a new name.
"We will be third force in Bihar. The state needs neither casteism nor communalism," he said, criticising BJP and the RJD-JD(U) alliance.
Yadav is likely to be patron of the new outfit, a move aimed to avoid his disqualification as an MP since he was elected on the RJD symbol.
The Madhepura MP was expelled from RJD last month. His wife Ranjeen Ranjan is a Lok Sabha MP from Congress.
The five-time MP enjoys clout in parts of Bihar and can play a spoilsport, especially for RJD-JD(U) alliance, in the elections.
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