India's Mundra port has banned ships older than 25 years of age from entering its waters after a sunken cargo ship leaked oil off the coast of Mumbai last week, a maritime firm said.

Panama-flagged cargo ship Rak Carrier, carrying 60,000 tons of Indonesian coal, sunk on its way to Gujarat and caused an oil spill visible for up to 12 nautical miles.

Mundra port authorities informed shipping companies in a letter that state regulators would soon make an announcement implementing the ban.

"No new chartering of vessels over 25 years old is to be henceforth carried out if the vessels are planning to work cargo at any port owned (by the Gujarat Maritime Board). Such vessels will be banned from entering," said shipping and logistics firm GAC.

Rak Carrier, built in 1984, lost its safety certification last November and was anchored off Mumbai for 10 days before sinking, industry officials said. (Reuters)