Most of the passengers on the vessel were Bengalis from 'The Tagoreans' - one of UK's oldest cultural organisations established in London in 1965, and were marking its golden jubilee year celebrations yesterday.
"It was quite a shock as towards the end of the three-hour cruise two of the engines caught fire. We could see smoke billowing at the back of the boat, which was coming inside. There was a bit of panic but all the passengers remained surprisingly calm," a spokesperson for 'The Tagoreans' told PTI.
The company which owns the boat has since apologised to the group, which included young children and disabled members, and said a "full investigation" is underway.
"We wait to hear back from them. It is a relief as things could have been much worse. We had an enjoyable afternoon of Rabindra Sangeet and fun and games until then," said the spokesperson.
The fire was put out before firefighters arrived at the scene and passengers and crew were taken off the ship by two other boats on the river.
"Firefighters and officers were called to a small engine fire on a tour boat in the Thames this afternoon [Sunday]. The fire was extinguished before the Brigade arrived," London Fire Brigade said in a statement.
"Crews checked the boat for safety and ensured that the fire was out. Eight fire engines and the fireboat attended the incident from stations including New Cross, Greenwich, Millwall and Shadwell," it added.
The Port of London Authority said boat is currently "safe and secure" by the river bank with its anchor dropped, and will be towed away in due course.
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