A major fire broke out on Wednesday onboard the MT Genessa oil tanker anchored 15 nautical miles off Deendayal Port at Kandla.
All 26 crew members were evacuated safely, officials said. Two of them suffered burn injuries.
The tanker is 183 metres in length and is known to be carrying around 30,000 tonnes of High Speed Diesel.
The Indian Coast Guard swung into immediate action, firefighting using tugs and rigs available from nearby resource agencies.
It is also preparing to cordon the vessel to avoid oil spillage.