The fire broke out at 4 pm and has been brought under control, Visakhapatnam Police Commissioner B Shivadhar Reddy said.
"The cause of the fire is not yet known. The fire was brought under control," Reddy told PTI.
The initial reports from the site suggested that the fire accident occurred due to blasting of cooling tower due to short circuit, sources said.
A thick layer of smoke engulfed the area causing tension and panic among nearby residents.
Fire fighting tenders from all over the city were pressed into service to control the fire, police said adding the injured were shifted to INS Kalyani and other nearby hospitals.