The Iranian National Observatory site is under construction at an altitude of 3600m at Mount Gargash in central Iran. It offers a promising site for optical and near-IR observations with a 0.7 arcsec median seeing and thus a number of observing facilities have been planned. The largest facility is a 3.4m Alt- Az reflecting Ritchey-Chretien optical telescope under development with an exit focal ratio of ~f/11 providing a generous 20 arcmin field of view at the main Cassegrain focus. This telescope will be equipped with high resolution medium-wide field imaging camera as well as medium and high resolution spectrographs. The telescope will benefit from an active support for the primary mirror. The primary mirror has been manufactured, polished and delivered. In this project overview, the design parameters for the 3.4m telescope and the current status of the project are presented.