The company had planned to build a 3-million-tonne capacity steel plant in West Bengal, in partnership with Japan's Sumitomo Metal Industries. 
Now, both the project and Sumitomo's participation are on hold, Nittin Johari said. 
"Land acquisition and everything is becoming a problem," Johari said, without elaborating. 
Sumitomo, which Bhushan had previously said would take a 26-40 percent stake in the 200 billion rupee ($3.78 billion) project, is merging with Nippon Steel. 
"We will come to know (about Sumitomo's participation) only after the merger," Johari said. 
Economic uncertainty and sluggish demand have clouded the outlook for steelmakers globally and prompted many companies, including ArcelorMittal and Tata Steel, to cut production, mainly in Europe.
Bhushan's board approved the $1 billion share offering in May but the company did not say how funds would be deployed.
"Market is not conducive," Johari said. 
Bhushan expects its rate of revenue growth to slow to 25-30 percent for the full fiscal year ending March, sharply below the 52 percent rise in the first six months, he said. 
Still, he said the company expects to achieve a 25 percent margin for the full year as costs for inputs such as coal and iron ore ease. The margin was 23 percent in the first half. 
Bhushan, which has the capacity to produce 2.2 million tonnes of hot-rolled steel per year, has not cut production and has no plans to do so, Johari said. 
"Demand is not strong, definitely not strong. It's okay. But we are not in a situation where we are not able to sell," he said. 
Steel prices have not weakened in the past month and should remain stable in the coming quarter, Johari said. 
"Even in the global market, people are cutting production, not reducing the prices," he said.