Sonalika International Tractors plans to enhance the capacity of tractor units at its Hoshiarpur plant by investing Rs. 500 crores.
In addition, Rs.200 crores will also be invested in its equipment division to expand its production.
Talking to ANI on Monday, Sonalika Group vice chairman AS Mittal said: "By December next year, will double the capacity at Hoshiarpur from present 75000 units to 1.5 lakh units".
Sonalika Tractors has emerged as a key player in the tractor market and is among the top five tractor manufacturers in the country.
Mittal further said that the growth-oriented new industrial policy of the Punjab government has inspired not only Sonalika Tractors, but other industrial units.
Sonalika Tractors recently offered Pakistani industrialists tractor technology as part of the latter's expansion plans.
Mittal said Punjab is now having a peaceful and pro-industry atmosphere.
At the height of Sikh militancy in the state in the 1980s and 1990s, industrial outfits had to shift their operations to neighbouring states to survive.
Mittal believes that those black days are over and Punjab is progressing along expected lines.