The Union Energy Ministry has approved in principle the Bihar government's demand for setting up a nuclear power plant in the power-starved state, State Energy Minister Vijendra Prasad Yadav said in Patna on Wednesday.

The chairman of the Nuclear Power Corporation of India Limited communicated the decision to Bihar State Electricity Board Chairman M M Singh and said a team of experts has been constituted for site selection, Yadav told PTI.

The state government plans to allot a site for the 2,000 MW plant at Rajauli in Nawada district, but it is not rigid on this and will offer alternative sites in neighbouring Gaya and Aurangabad districts to the NPCIL team that is expected in Patna soon, he said.

After selecting the site, the expert group will prepare a feasibility report that will be presented to the Union Cabinet for approval.

The Centre's decision followed a meeting between Chief Minister Nitish Kumar and Prime Minister Manmohan Singh [Images] in February, during which he made a strong pitch for a nuclear power plant for Bihar.

Making common cause with Nitish Kumar, Railway Minister Lalu Prasad Yadav and Steel and Fertiliser Minister Ram Vilas Paswan too met the prime minister with a similar request.

"There is no nuclear power plant in the entire eastern and northeastern region. Our demand had merit and so it was accepted. We are glad. It is a historic achievement for the Bihar government," Yadav said.