Modi, who holds the Kalpasar portfolio, has not convened a single meeting of the project, Gujarat Social Watch's Mahesh Pandya alleged.
"After 2005, not a single meeting has been called by Modi regarding the project," Pandya alleged.
Kalpasar is a water resources project involving creation of fresh water reservoir in the Gulf of Khambhat for meeting demand of irrigation, domestic and industrial water supply.
Activists also accused Modi of misleading the people regarding the Bhadbhut barrage, which is to be built on Narmada river to bring the flood water from there to Kalpsar.
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"Even after all environmental clearances are over, it will take 270 days for further clearances at state and local level, only after which a tender for the project can be floated," Pandya further said.
"To say that a tender for Rs 4,000 crore will be floated soon to begin work on Bhadbhut barrage is fooling and misleading the people of Saurashtra region, who are reeling under water scarcity," he added.