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Police, National Disaster Response Force and State Disaster Response Force personnel are at the spot carrying out rescue efforts, Uttarkashi Superintendent of Police (SP) Arpan Yaduvanshi said.
He added that the incident occurred between 6 am and 7 am.
As per records made available by officials of the National Highways and Infrastructure Development Corporation Limited (NHIDCL), 36 labourers are trapped inside, he said.
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The collapsed portion is located about 200 metres from the entrance of the tunnel, the SP said.
He said an oxygen pipe had been inserted into the collapsed part of the tunnel so that those trapped would not have difficulty breathing. Food items are also being sent in and the workers will be rescued soon, Yaduvanshi said.
On the circumstances that led to the collapse, he said the priority was to save the lives of those trapped inside the tunnel.
The tunnel is part of the Char Dham all-weather road project. Its construction will reduce the journey between Uttarkashi to Yamunotri by 26 km.