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The director has reportedly been inspired by the fasts from supporters of social activist Anna Hazare, who has led a peaceful movement against corruption in public office in India.
Jha told Mid Day: "I am at the moment working on the script of Satyagraha.
"It is about peaceful protest, though not on a pan-India level. The cast is yet to be finalised, but Bachchan will be in the film."
Jha added that the movie will deal with corruption at a state level rather than a national level, like his other films such as Aarakshan and Rajneeti.
"Isn't that the way my films and protagonists always are? I think it's important for any movement to be rooted to a specific population. It's the only way it can be effective," he said.
Jha earlier claimed that he was making a film as a response to censorship in India, after special interest groups campaigned against Aarakshan.
Aarakshan, co-starring Amitabh Bachchan and Saif Ali Khan, caused controversy because of its focus on the caste system.
Bachchan will next be seen in Shoebite, which sees him playing a man in his 60s who rediscovers his love for life after setting out on a journey.
> Aarakshan grosses £7.7m in its first week
Watch the trailer for Aarakshan below:
