TEHRAN-Indian government sources have said that New Delhi has recently allowed investment in Indian rupees in Iran, the Again Age reported on Friday.

The announcement was made simultaneous with Iranian President Hassan Rouhani beginning his visit to India from Hyderabad on Thursday. 

Sources said this will not violate U.S. sanctions on Iran since the transaction will not be in U.S. dollars. The Indian move will hugely help the Iranian economy as it will draw in more Indian investment into Iran.

If an Indian businessman wants to invest a certain amount in rupees, he can deposit the money in rupees in the bona fide concerned Iranian account in one of the Indian banks and the equivalent amount of Iranian rials will then be deposited in the venture in Iran, sources said.

As previously reported, India’s contribution to the development of Iran’s Farzad B gas field in the Persian Gulf and its operationalization of Chabahar Port in southeast of Iran are among the issues to be discussed between President Rouhani and Prime Minister Narendra Modi on Saturday during delegation-level talks.

Indian government sources said the Chabahar port has already been operationalized and is expected to reach full capacity in the coming months.

HJ/MA

PHOTO: Iranian President Hassan Rouhani (center) meets Muslims leaders and scholars in Hyderabad. (Photo: AP)