The state-run Shipping Corporation of India (SCI) has confirmed its oil exploration support vessel SCI Ratna has sunk about 96 nautical miles off the coast of Mumbai.
"All the 16 shipboard personnel who were on board the vessel have been rescued and are safe," SCI said in a filing to the Bombay Stock Exchange.
"The probable reason of sinking of vessel is ingress of water in the engine room. The actual cause is yet to be ascertained and is being investigated."
The anchor handler was contracted to the Oil and Natural Gas Corporation (ONGC) to support its oil exploration operations at the Bombay High oilfield.
The 2,039-tonne vessel was 64.8 metres in length and was built at Bharati Shipyard in 2011.