India's The Essar Group has put on hold the expansion of its Vadinar oil refinery in Gujarat as the "market condition is not good," Essar Group Chairman Shashi Ruia said Monday.

While that first phase of the expansion entailing a cost of US$6 billion is over, the second phase aimed at augmenting the capacity from 16 million tonne to 34 million tonne, have been put on hold for six to eight months since the "market condition was not good," he said without elaborating.

Ruia, speaking to the reporters here at the inaugration of its steel processing facility said that the company had done the financial closure for US$3.4 billion of the total US$6 billion for the purpose.

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