The INS Vindhyagiri had 300 tons of fuel on board. Everyone on board was evacuated. The navy's fire brigade has teamed up the Mumbai fire brigade to fight the fire.
The Navy has complained that the merchant ship did not follow standard operating procedure.
The Vindhyagiri was entering the harbour on Sunday evening at 5 pm and the Nordlake was on its way out when it hit the warship near the Sunk Rock Lighthouse.