The protest was also joined by leaders of other parties, including Communist Party of India-Marxist leader Brinda Karat, at Jantar Mantar in the heart of the capital.
"A total of 193 villages would be drowned if the height of the dam is raised. The Narendra Modi government is not concerned about the people who will be rendered homeless," Aam Aadmi Party leader Medha Patkar said.
The government last week approved the raising of the height of the dam by 17 metres.
"Modi is being a dictator. He doesn't even want to involve the Planning Commission on this issue. We want to meet Modi," said Patkar, who has headed the Narmada Bachao Andolan for many years.
Another AAP leader Prashant Bhushan said: "If any of the NDA projects are opposed by anyone, it is considered a threat to the economic security (of the country). This mentality of the government is hazardous."