Union Human Resource Development Minister Arjun Singh intimated this to Chief Minister Nitish Kumar in a letter, the state science and technology minister Anil Kumar said on Friday.
The letter said the spot selected for setting up the prestigious institute should have approximately 600 acres and be well connected by road, rail and air.
Kumar said the Bihar government will take "no time" in meeting the conditions for setting up the IIT. "We will soon be selecting a site in consultation with the chief minister to begin the process for acquisition of the land," he said, expressing happiness at the Centre's gesture.
Singh also asked the chief minister to appoint a special officer who will coordinate between the Centre and the state for the setting up of the institute. Official sources said the IIT, wanted by Bihar for nearly six decades, would come up in Patna.
The state has been chosen for setting up the new IIT as it has no national institute after the formation of Jharkhand. A large number of students from the state join various IITs every year.