A state 1 alert was declared as the area of spotting was near the ammunition depot. Further the area in question is close to INS Abhimanyu.
Police officials who questioned the children, prepared a sketch of one of the persons they are believed to have seen. The sketch has been released and the people have been asked to provide any information if they come across such a person.
A high alert has also been issued in Gujarat following this information. The Western Naval Command declared a high alert along the coastline of Navi Mumbai, Raigad, Mumbai and Thane.
The area in which these people are said to have been spotted houses a naval base and the ONGC plant.
While Navy choppers combed the area, the Indian Navy, Coast Guard, Maharashtra Police and Anti-Terrorism Squad (ATS) are also conducting operations.
The Navy's spokesperson said, "A report that some suspicious persons have been sighted early morning in Uran, Maharashtra was received in the morning. As per the report, 5-6 people were sighted in Pathan suits and appeared to be carrying weapons and backpacks."