The under-construction tunnel caved in late on Saturday evening.
Nine labourers were trapped after an under-construction tunnel of the Bargi canal project caved in at Sleemanabad in Katni district of Madhya Pradesh. Relief operations are on and seven of the nine labourers have been rescued, officials said.
Locals officials, along with the State Disaster Emergency Response Force (SDERF) team, are trying to safely rescue to remaining labourers.
The SDERF team arrived from Jabalpur, said Katni collector Priyank Mishra.
The incident took place late on Saturday evening.
Madhya Pradesh Additional Chief Secretary (Home) Rajesh Rajora is monitoring the rescue operation from the state secretariat.
"The SDERF team with the necessary equipment is trying to reach the labourers by digging a shaft. The district collector and the SP are camping at the site to supervise the rescue operation," Mr Rajora told PTI.
The trapped labourers were responding to calls from rescue personnel, Sleemanabad Sub-Divisional Magistrate Sangh Mitra Gautam said.
Chief Minister Shivraj Singh Chouhan has also taken cognizance of the incident in Sleemanabad. In a phone conversation with the Katni collector, he sought information about the incident.
He has also instructed officials to ensure that those injured get proper treatment.