Platinum II, a former luxury liner, is allegedly carrying more than 200 tonnes of toxic asbestos and polychloride biphenyl.
According to media reports, Platinum II is waiting for clearance to beach at Alang, the ship-breaking centre in Bhavnagar district.
Environmentalists said that the waste could leach into the sea and contaminate the marine ecosystem.
While, the Gujarat Pollution Control Board, which inspected the ship and submitted a report last week, said there was "nothing hazardous" in the vessel.
"A CPCB official from our Zonal office in Baroda is part of the team on behalf of the environment ministry. The team will submit the report by Oct 23," a senior official from the ministry said.
However, the state pollution control board has not given permission for the ship to beach at Alang.