The vast project in the Kutch region of western Gujarat state spread over an area of 72,600 hectares (180,000 acres) -- the size of Singapore -- will contain solar panels, solar energy storage units and windmills.
"The hybrid renewable energy park will be largest in the world and generate 30,000 megawatts of power," Modi said as he inaugurated the energy park as well as an adjacent desalination plant.
"Energy security and water security are vital in the 21st century," Modi said. "The two major projects of the renewable energy park and the desalination plant inaugurated today in Kutch are steps towards achieving the two."
The energy project in Modi's home state will account for a large chunk of India's ambitious target of generating 175 GW in renewable energy by 2022 and 450 GW by 2030.
Modi, 70, said it would also help the world's second-most populous country reduce its carbon dioxide emissions by up to 50 million tonnes per year.
The desalination plant will be able to process 100 million litres of water a day for 800,000 people living in the arid region bordering Pakistan.
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