Indians can now use rupees to invest in Iran

New Delhi [India], Feb 16 (ANI): To deal with the absence of proper banking and payment channels in Iran, India has allowed the investors to invest money there in Indian currency.

According to sources, this decision was implemented last month to stimulate trade and investment between the two countries.

Iran is the third country, after Nepal and Bhutan, where investments can be made in rupees.

In the new rupee-riyal mechanism, an investor will put money here in Indian rupees and will get riyals of the same value to operationalise its investments in Iran.

This decision was taken ahead of Iranian President's visit to India.

President Hassan Rouhani arrived here with the focus on enhancing connectivity, trade, investment and energy partnership.

During the visit, India and Iran are expected to sign a number of memorandums of understanding (MoUs) to promote cooperation in the field of energy and connectivity and further strengthen people-to-people contacts.

India imports 60 percent of its fuel and Iran is a major supplier.

Talks on Farzad B oil fields is likely to figure during official talks between India and Iran. However, sources term it as a commercial decision.

Chahbahar port, which was built by India in Iran and was recently inaugurated by Iranian President, received first wheat consignment from India.

Sources indicated that the port will be fully operational by the end of the year and that all the equipment required have been ordered.

President Rouhani, who landed in Hyderabad on Thursday evening, will offer Friday prayers at the historic Mecca Mosque. This is the first visit by an Iranian President in last 10 years.

The President will meet Prime Minister Modi on February 17 in Delhi for official talks.

Apart from a number of agreements, both countries are also expected to release a stamp showcasing connectivity between Kandla and Chahbahar port.