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MUMBAI:  The Navy is on the highest level of alert after two school students in the coastal town of Uran near Mumbai reported that they had seen masked men with guns.

One of the students claimed to have spotted one man. The other reported having seen five men dressed in black around 7 am, carrying back-packs and "speaking a different language", near an ammunition storage facility of the naval base in Uran. The second student also claimed to have overheard the men saying "ONGC" and "school".

The men were in "Pathan suits", the students reportedly told their school principal.  The school informed the police. The school has declared a holiday tomorrow due to security reasons.

The Navy, sources say, is treating the information very seriously as the students are "old enough" and has launched efforts to secure all bases. "We cannot overlook anything at this point," a senior officer said. All air force units in Mumbai are also on high alert.

The police, Maharashtra’s anti-terror squad or ATS and the navy are all involved in a massive multi-agency search operation. "No person has been located or apprehended till now," said the Navy spokesperson.

The news spread like wildfire in Uran and nearby areas, which led to schools and colleges shutting down early.

Uran is about 50 km from Mumbai, where 166 people were killed in November 2008 when landmarks in the city were attacked by 10 terrorists who came by sea.  It is close to important locations like the Jawaharlal Nehru Port and the Bhabha Atomic Research Centre.

India has also been on guard since the terror attack in Jammu and Kashmir’s Uri on Sunday, in which 18 soldiers were killed. Since the attack, there have been several infiltration attempts which have been stopped by the army.

To all coastal security, fishermen, citizens etc.

We want to inform & warn you that four people dressed in Indian army uniform were seen in suspicious nature at Uran and Karajan area and we  we feel these persons can come via the sea route to Colaba. From security  point of view please be alert and inform us if you come across any suspicious activities.

Please contact us on numbers 02222852885 or 02222856817  and free call helpline no. 1093. .

Regards - Sr.P.I.Vijay Dhopavkar, colaba police station, mumbai.OR contact (MB)who in turn will inform  the concern.