The BJP leader reached at the Raj Bhavan here around 1500 hrs and submitted his resignation to Governor Kamla Beniwal.
Mr Modi, a four-time Chief Minister since October 7, 2001, was elected yesterday as BJP Parliamentary Party leader in the historic Central Hall of Parliament.
He led the BJP to a historic win in the just-concluded Lok Sabha elections where the saffron party bagged 282 out of 543 seats.
After tendering his resignation, he moved to Town Hall to attend a crucial meeting of the BJP MLAs who will elect their new leader with sources saying that powerful Revenue Minister Anandi Patel is likely to be chosenas new Chief Minister.
Along with Mr Modi, his Cabinet members also resigned.
The BJP has appointed party’s Parliamentary Board member Thawar Chand Gehlot and Gujarat in-charge Om Mathur as Central observers for the election of the new Chief Minister.
The Prime Minister-designate received a rousing welcome in the Gujarat Assembly. Members, cutting across party lines, bid farewell to Mr Modi who will be the second Gujarati Prime Minister after Morarji Desai.
In an emotional speech in the House, Mr Modi said Gujarat will move ahead on the path of development as he is going for a new responsibility at the Centre.
’Everybody is asking what is Gujarat model? This occasion is the Gujarat model,’’ he said, referring to the wishes of the House.