Bachchan, 64, said in recent interviews that even the first time round, he wanted to play Gabbar Singh, the tobacco-chewing, foul-mouthed villain of Sholay.
But he was cast as one of two reformed crooks who save a village from the bandit in the 1975 cult film.
Newcomer Amjad Khan bagged Gabbar's role and became a Bollywood legend for his portrayal of what became Indian cinema's best-known villain.
The remake is called Ram Gopal Varma ke Sholay to make it clear that the film is his interpretation of the classic.
"It's a distinctive Sholay, set in a different time-zone," Varma, a top Bollywood director known for making unconventional movies, said.
Varma's Sholay is not set in the treacherous ravines of India's northern badlands as in the original version but in the country's commercial and entertainment hub of Mumbai.
Neither does his Gabbar Singh command a ragtag gang of thieves but heads a well-organised crime syndicate.
"I am the biggest fan of Sholay and Gabbar," said Varma, who has watched India's best 'curry western' 27 times. "Over the years the legend of Gabbar has grown immensely."
Varma says the choice of Bachchan to play Gabbar Singh was natural keeping in mind the complexities of the role. The lead pair is played by Ajay Devgan and newcomer Mohit Ahlawat.
Filming of the remake is underway in studios in Mumbai and it is slated to open in May.
"We needed someone important to play Amjad Khan's role and who better than Bachchan himself," said the maverick director.
Varma's villain, looking markedly older than the original Gabbar, wields a scorpion-headed stick--instead of the leather belt that the bandit in the original version lashed around--and has a prominent scar across his nose.
"He looks menacing and evil. It gives him an effective and authoritative look," said Varma, who has got Bachchan to wear a blue lens in one eye and green in the other.
Varma said when he offered the role to Bachchan, who has acted in over 150 films portraying the rebel and the honest police officer, the star laughed it off as a joke.
"He accepted it once I narrated to him my vision of Sholay. Seeing Bachchan play Gabbar, Amjad Khan will be eclipsed from people's memories," Varma said.