The Union Cabinet on Thursday decided to revoke President's rule in Karnataka.

The decision, which came two days after Karnataka Governor Rameshwar Thakur submitted his final report on the BJP-JDS coalition's demand for invitation to form the government, will in all probability pave the way for the first BJP government in south India with B S Yediyurappa as the chief minister.

Both the JD-S and BJP legislators now await a notification by the Governor in which he would officially invite the coalition partners to form the government. Following this, the assembly will have to be convened and B S Yediyurappa will have to take a floor test to prove his majority.

Political activity in the state resumed in full swing as news of the President's rule being revoked spread. Mobile phones were busy and some legislators who had returned to their home constituencies are all set to return to Bangalore to stay in the thick of the action.

H D Kumaraswamy, who is in Bangalore, said he was happy at the development. He, however, sounded a word of caution to the BJP and said: "Don't ignore my father. If the BJP does so, then there will be problems in the formation of the government."

B S Yediyurappa was unavailable for comment. BJP sources said he was on his way to Bangalore after offering prayers at the Vaishnodevi temple. He is expected to stop over at Delhi before that.

Both JD-S and BJP feel that parading their legislators before the President paid off and it was necessary for them to show their strength before the entire nation.

As of now all seems to be fine in both the camps. Even the news of H D Revanna and three others withdrawing support did not bother the BJP too much, as they feel that the legislators are only trying to increase their bargaining power.

Both parties, however, cannot afford to take everything lying down as they will have to watch out for the verdict of the Speaker, which is expected to be out on November 17. A petition had been filed by some independent legislators based on a letter by JD-S chief H D Deve Gowda seeking to dismiss Kumaraswamy and 38 legislators for disobeying the party's whip and forming the government with the BJP.