Chandigarh, March 9 -- A hefty payment of about Rs 1,300 crore made by the Haryana Power Utilities to Sikkim Urja Limited (erstwhile Teesta Urja Ltd) - a power generation company in which Greenko Energies Pvt Ltd holds a majority stake - without the approval of the chief minister and energy minister, as required under government procedure, has put the spotlight on the decision-making process that facilitated the high-value payment. The payment was made in October 2025 to Sikkim Urja on the basis of 2022 orders of Central Electricity Regulatory Commission (CERC) and 2024 orders of Appellate Tribunal for Electricity (APTEL) on an interlocutory application filed by the Haryana Power Purchase Centre (HPPC). The Haryana Power Utilities had terminated the power sale agreement in March 2018 citing time overrun and cost overrun in the commissioning of the 1,200-MW Teesta-III hydroelectric project in Sikkim. The power utilities said the escalation in the project's capital cost from Rs 5,700 crore to Rs 13,965 crore was expected to push the tariff and burden the consumer. The CERC in its November 22, 2022, order had held the 2018 termination of a 2006 power supply agreement by HPPC as illegal, ordering that PTC India Ltd, a central government initiated public-private partnership and Teesta Urja were entitled to the payment of tariff by Haryana Utilities as determined by CERC from commercial operation date of the project and arrears payable (after adjusting any revenue earned from sale of power under short term/ through exchange) within two months of the order. While hearing an interlocutory application filed by the HPPC seeking an interim stay on the CERC's order, the APTEL refused to interfere on April 19, 2024. However, it directed that payment would be released by the HPPC to Sikkim Urja following the submission of an unconditional bank guarantee from a scheduled bank by the latter. "Needless to state that payment made by the HPPC to Teesta Urja shall be subject to the result of main appeal,'' APTEL had ordered while disposing of an interlocutory application of the HPPC. The APTEL had asked Sikkim Urja to submit unconditional bank guarantee to protect the interest of Haryana Utilities as their main appeal (number 69 of 2023) praying to set aside CERC's order of November 22, 2022, is pending adjudication. When asked, state energy minister Anil Vij told HT that the Power Utilities made the payment unilaterally without taking orders from him and the chief minister. "Such matters have to be approved by the energy minister and the chief minister," Vij said. The energy minister said the officials responsible for making the payment were shifted out in October. Haryana's power companies are government owned public sector enterprises. As per government procedure, payments of this magnitude are to be made by the Power Utilities only after obtaining approval from the CM on file. "This holds true for payments made on the directions of the CERC, APTEL and the Supreme Court. The Power Utilities had in 2022 made payments of Rs 712.72 crore to Adani Power Ltd pursuant to various orders of CERC, APTEL and the Supreme Court after taking approval from the then CM on February 4, 2022. Adani Power had made these claims on account of change of law events. The matter was also put up before the Council of Ministers twice and advice of the advocate general was also taken,'' said an official citing a past precedent. It is learnt that negotiations between Sikkim Urja and the Haryana government had also started to arrive at an amicable settlement. This was also recorded by APTEL in its April 19, 2024, order and CERC in its October 18, 2023, order. "The strategy was to buy time to work out a settlement. The payout would have reduced with passage of time. So, the decision to release the payment came as a surprise," said an official. In October 2023, the 1,200 MW hydroelectric project suffered significant damage due to flash floods in Sikkim and was rendered non-functional. Sikkim Urja had told APTEL that it urgently needed funds to restore the project and resume power supply. The Sikkim Council of Ministers decided on February 3, 2024, to disinvest the 60.08% equity share of Sikkim Power Investment Corporation held in Sikkim Urja to Greenko Energies Pvt Ltd (GEPL). As per ACUITE, a credit rating and research agency, Sikkim Urja became a step-down subsidiary of GEPL, effective March 5, 2025. GEPL is a subsidiary of Greenko Mauritius. As per a July 30, 2025, credit rating by ACUITE: "Sikkim Urja is further expecting to receive Rs 1,535 crore from Haryana Utilities for non-operational PPA as CERC and APTEL gave an order in favour of Sikkim Urja." A December 12, 2025, statement by CareEdge Ratings which analysed Greenko Energies Pvt Ltd's credit profile said it expected partial restoration of Sikkim Urja's operations through the commissioning of a cofferdam by September 2025 which has been delayed due to pre-monsoon rains in April and May and extended rainfall in September and October. "As articulated by the management, the revised timeline for the cofferdam to be commissioned is March 2026. The cash flow situation in the asset has improved following the receipt of about Rs 1,300 crore from the Haryana Discoms pursuant to an appellate tribunal for electricity order, and an on-account insurance claim payment of about Rs 500 crore from the insurer," the credit rating agency said in the statement referring to the delay in restoration of project....