The plant would be spread across 23,000 acres area of Sambhar Salts, a subsidiary of Hindustan Salts.
The first phase of the project, which would be 1,000MW, is expected to be commissioned by 2016.
It would be setup by a joint venture of companies including Bharat Heavy Electricals, Solar Energy Corporation of India, Powergrid Corporation of India, Satluj Jal Vidyut Nigam and Rajasthan Electronics & Instruments.
Once the plant becomes fully operational, it would generate 6,000 million units of electricity per year, according to Business Standard.
The rest capacity would be implemented through a different models based on the experience gained during implementation of the first phase of project.
