Environmentalists says that parts of the beach have turned black as oil carried by waves continues to come ashore.They also say that dead fish have been found on the coast near Paradip port.
But port authorities insist that there will not be a major spill because most of the oil is "semi-solid" and remains inside three sealed containers.
"If urgent steps are not taken by concerned agencies to empty the fuel tank of the capsized vessel, the oil spill may spread onto Gahirmatha beach, posing a serious threat to the mass nesting grounds of Olive Ridley sea turtles," environmentalist Biswajit Mohanty said.
"The turtles are likely to begin their mass nesting in the area by the end of this month.
"The sea waves in the region break from south to north, which will push the oil spill towards Gahirmatha beach. This may also cause high mortality among marine species including jelly fish and crabs. That in turn will lead to starvation among Olive Ridleys, who feed on them," Mr Mohanty said.
Gahirmatha sea beach is five nautical miles away from the spot where the ship ran into difficulties.
Orissa's state government has asked for help from central government, saying it is worried about the delay in salvaging the ship and the possibility of a serious oil spill.
The beaches of Orissa are one of the world's last nesting grounds for Olive Ridleys, which have been listed under the US Endangered Species Act.
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