Three sailors suffered burns after a minor explosion occurred in boiler situated close to the engine room of the INS Ganga on Friday.
The incident on the frigate Godavari class vessel occurred around 12.50 p.m. at the Mumbai Naval dock, media reports said.
The vessel had anchored for a routine maintenance check-up.
The sailors are being treated at the INHS Asvini Hospital in Colaba.
The Indian Navy has ordered a probe to find out the cause of fire in the boiler.
Friday's incident was the seventh accident/mishap involving the Indian Navy in 2014 and the 16th incident since 2000.
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