The final decision would be announced soon, he said.
The Centre had proposed establishment of a 2800 MW power plant at Rajauli but when the state government expressed its inability to supply water for the project, the site could not be finalised.
"Talks on Rajauli is on, it is not rejected," Sinha said at a function at his alma mater Bihar College of Engineering-NIT.
Sinha was speaking at Alumni Golden Jubilee function of 1963 batch of the college. Chief Minister Nitish Kumar, who studied electrical engineering from the same college, participated in the function.
After approval of standing site selection committee of Nuclear Power Department and Environment ministry, the site would be finalised, he said.
Issues like availability of water seismic activity, movement below earth and tectonic activity are important for finalisation of a site for nuclear power plant, he said.
Sinha said after selection of site, its development would take at least two years.
A proposal for land at Pirpainti in Bhagalpur is also under consideration, he added.
