Solar technology manufacturer SunEdison and Adani Enterprises have signed a memorandum of understanding to establish a joint venture to build a vertically integrated solar photovoltaic manufacturing facility in India with an investment of Rs 25,000 crore ($4 billion).

The MoU was signed at the Vibrant Gujarat summit by senior representatives from both companies.

The new facility will be constructed at Mundra in Gujarat over a three-year period.

"It will be a solar hub that will vertically integrate all aspects of solar panel production on site, including polysilicon refining, cell and module production. It would initially be a five giga watt solar park which will move up to six gigawatt," Pashupathy Gopalan, president, Asia Pacific, SunEdison, said.

This facility is expected create enough solar panels to fuel substantial solar growth in India, furthering India's goals for clean, renewable energy independence, and will add up to 20,000 jobs to the local economy.

"This facility will create ultra-low-cost solar panels that will enable us to produce electricity cost effectively that it can compete head to head, unsubsidized and without incentives, with fossil fuels," Ahmad Chatila, president and chief executive officer of SunEdison, said. "The development of the largest integrated solar manufacturing facility furthers the vision 'Make in India' campaign," Vneet S Jaain, chief executive officer of Adani Power, a subsidiary of Adani Enterprises, said.

The Narendra Modi government is giving a big push to solar projects across the country.

A few days ago, the government announced draft guidelines for three gigawatts of solar projects.

Last month, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi approved the scheme for setting up of 1,000 MW of grid-connected solar PV power projects with VGF (viability gap fund) support of Rs 1,000 crore, by CPSUs (central public sector enterprises) under various central/state schemes, in three years period from 2015-16 to 2017-18.