The government will not rush to set up ultra mega power project in Bihar as it could mean costly power to the people, the Lok Sabha was informed on Thursday by Power Minister Piyush Goyal .

Responding to supplementariesPiyush Goyal said the government would prefer to adopt a "calibrated" approach in setting up an ultra mega power project in Banka region of Bihar.

He said the government would not rush to set up the project there as it would mean costly power per unit to the people of the state. Today, the power is available at a cost of nearly Rs 4 per unit.

The minister said the country has surplus power and coal as states like Bihar get power at a cost of Rs 3.50 per unit in 'power exchange'.

He said while talks are on with the state government for land for the project, the coal block has been identified.