Hyderabad, July 4: The state government will have to shell out an additional Rs 700 crore on the weaker section housing scheme for the current year due to the Telugu Desam. The TD had complained to the Centre regarding payments for levelling the ground to build houses under the "Indiramma programme.' The state government used to pay Rs 3,200 to each beneficiary under the NREGP, to level the ground before constructing the house. Responding to the TD's complaint, the Centre ordered the state to stop the payment as wages to the beneficiaries. However, Andhra Pradesh continued to pay Rs 3,200 from the state exchequer to almost 21 beneficiaries. The decision will cost the exchequer Rs 700 crore. Besides this, the state has to bear an additional Rs 700 crore, due to the steep hike in prices of cement, steel, bricks and other construction materials. "When the "Indiramma housing' scheme was launched, the state government had decided to pay Rs 25,000 to each beneficiary. Due to the spiralling prices of construction materials and other unforeseen expenditures, the government decided to increase the amount to Rs 31,200 for each house,' housing minister, Mr B. Satyanarayana, told mediapersons here on Friday.