New Delhi, Aug 3 - A corruption case involving an Israeli firm and a former head of Nalanda ordnance factory has delayed the plans to set up the munitions manufacturing unit in Bihar, parliament was told Monday.

India's 40th ordnance factory at Rajgir in Bihar was to be set up jointly with Israel Military Industries (IMI), which is under the Central Bureau of Investigation's (CBI) scanner for the bribery case.

'In view of the case registered by the CBI against Sudipto Ghosh, former DGOF (Director General Ordnance Factory), and others, it has been decided by the ministry of defence to put on hold for the present all procurement with IMI till further orders,' Minister of State for Defence M.M. Pallam Raju told parliament Monday.

The Israeli ammunition firm was scheduled to complete the project to revive the factory on the lines of the IMI's ordnance factory in a Tel Aviv suburb by August 2011 under the Rs.