"I do not see any challenge fighting against him, this is like any general election and I am going to take on an average candidate," Mistry told reporters.
Mistry, who has done his post graduate from Vadodara's Maharaj Sayajirao University, targetted Modi over his "Pak agents" and "shahzada" remarks.
"Addressing someone as Pakistan's agent or frequently uttering a word like 'shahzada' reflects his communal mentality. With the intention of garnering votes for him and his party, Modi wants to create communal gaps in the country," Mistry told reporters.
"He (Modi) is wearing a mask of development but, he has communal and separatist views in his mind, which has come out in his recent remarks," he said.
Addressing a BJP meet in Jammu on Wednesday, Modi had targeted Defence Minister A K Antony and Arvind Kejriwal, calling them "agents of Pakistan and enemy of India" and speaking its language. Modi has time and again referred to Rahul Gandhi as 'shahzada' (prince).
Mistry replaced Narendra Rawat, who was the consensus candidate elected through primary, after the BJP declared Modi's nomination from Vadodara.
"Modi cannot win from Varanasi, while the people of Vadodara will give him the right answer as I am there," Mistry said.