The boat upturned about two nautical miles from the sea shore.
As many as 40 school children were on board the boat.
The Coast Guard said it has has diverted ships which were at sea and ships are also sailing from Mumbai.
Local BJP MLA Manisha Choudhary claimed that the boat was ferrying around 40 children.
Ryan Giggs interviewed for vacant Wales manager's job
Giggs is the first person to be formally spoken to, however, with the Daily Mail claiming that talks took place on Friday morning. The FAW is thought to be keen on appointing a Welshman following Coleman's successful five-year reign.
DySP and Local Magistrate had rushed to the scene and overseeing the rescue operations.
Rescue operations are now underway, and Coast Guard ships and helicopters have been diverted to the point of incident. The search for remaining missing students is ongoing. Helicopters from Daman, which is near Dahanu, have also been launched, a Coast Guard spokesperson said.
Around 25 students have been rescued, and search operation is on for the others, said Manjunath Singe, SP Palghar.