Three bacterial strains namely RM1, RM2 and RM3 were isolated from oil polluted site of Mumbai harbor and were explored for growth on HSD as sole source of carbon and energy in four different combinations. Parameters investigated were growth of bacteria by optical density measurement along with viable count, production of bio-surfactant/ bio-emulsifier, its biochemical characterization and percent degradation of diesel by gravimetric method. Consortium A consisting of RM1 and RM2 degraded 52.56% of HSD (4% v/v) in 7 days employing 2% (v/v) of bacterial inoculum at room temperatureon rotary shaker. Surface Tension of the Cell Free Filtrate (CFF) dropped from 68mN/mto <43mN/m in all the cases indicating the ability of bacteria to produce extracellular surface active agents. The Emulsification Activity (EA24) of CFF prepared from culture broth of Consortium C and D was 100% with C8-C19 hydrocarbons whereas Consortium A exhibited 75-100% EA24 with alkanes ranging from carbon number C10-C19.Results revealed that the oil degrading bacteria of consortia taken in this study hadthe potential to degrade hydrocarbons and could be further employed for remediation of HSD spillage.