New Delhi (PTI): The Railways will spend Rs 37,500 crore in 2008-09 on augmenting rolling stock, speed up separate freight track and launch innovative merry-go-round system for industrial goods to maintain the growth in freight traffic.

"The thrust of the budget is to consolidate the position gained so far," Chairman of Railway Board K C Jena said in his post-budget press conference. The freight traffic has seen consistent growth in the past three years.

With bulk of the Rs 81,901 crore revenue projected to come from total freight earnings, challenge for the railway is to sustain the incremental growth.

"Over the past three years, the Railways have consistently maintained an incremental loading of 60 million tonne and now has set a target of 850 million tonnes," Jena said.

The total traffic earnings in 2008-09 would be 12.6 per cent higher than the revised estimates of the previous year, he added.

He said the Railways would achieve this rate of growth despite it proposing a cut in passenger fares and making no provisions for increase in freight charges.

"We want to reduce the gap between the highest and the lowest class of passenger fares," V N Mathur, Member (Traffic) said.

For diversification and sustaining the freight revenue, the Railways needed to make investment in Dedicated Corridors and Merry-Go-Round system. This system was aimed at attracting the investments from the upcoming power houses in laying down tracks and other infrastructure. However, the locomotives and wagons would be made available by the Railways.

Rail Budget 2008-09