There are no reports of any casualties yet, officials said adding the cause of the fire is yet to be ascertained.
A massive fire had destroyed many parts of the hotel after it came under attack from terrorists on November 26 last year.
Fire officials said smoke was emanating from Taj Palace, the heritage wing of the hotel. Eight fire engines and eight tankers had been rushed to the hotel located near the Gateway of India in Colaba area.
The heritage wing of the hotel had been shut after the 26/11 attacks caused extensive damage to the structure.
Some portions of the heritage wing had been opened recently after restoration work.
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