Mumbai,  Indian policies relating to mining have to be reviewed and correlated with the geopolitics and the nation's vision and other aspects so that the revamping of the industry can be done, states a sectoral report by consulting firm KPMG.

The report also lists out various challenges faced by the mining sector.

"There is a need to revamp the mining industry in India through implementation of global best practices, elimination of bottlenecks and current policy and regulatory hurdles in order to give boost to the industry and provide a source of global competitiveness to its user industries," it said.

According to the report, there is a need to undertake a comprehensive policy review encompassing the review of current policy and regulatory regime and its impact as observed during the last few years, and mapping the global geo-political direction and correlating the same with the vision for the Indian mining sector.

There also must be discussion with industry participants in India across the value chain to identify pros and cons of the current system and suitable action points, and steps to understand the perspective of global mining players and determining key factors that influence their investment decisions and others.

According to the report, mineral blocks must be put for auction by the state governments only with pre-embedded statutory clearances, which will be transferred to the successful bidder post auction.

As regards the top challenges for the mining sector for 2022 the report said environmental risks, including new regulations like Environment, Social & Governance (ESG) and Business Responsibility Sustainability Reporting (BRSR).

Disclosure on ESG parameters will surely impact focus of lenders, investors and regulatory establishments which will in turn impact transformation of mining companies with respect to their ESG goals.