The Navy rushed to help after a merchant vessel Rak Carrier said it was being flooded.
Fifteen crew members of the ship that's registered in Panama had jumped overboard in a panic. Special rescue ships and helicopters traced all crew members and brought them to Mumbai. The crew consisted of Jordanians, Romanians and Indonesians.
The MV Rak Carrier was loaded with several thousand tons of coal. It was on its way from Indonesia to Port Dahej in Gujarat.
Experts say the cargo remains sealed and that no oil has spilled into the sea. The ship was reported sunk this afternoon; a navigational warning has been issued to other ships in the area.