There was a time when citizens expected nothing but oppression from the public authorities, later they expected chiefly to be left alone. But as of today, they expect a wide variety of services as a democratic right with greater degree of accountability as well as transparency. So, the public authorities need to wake up and find a solution in this regard. Reform in the existing system is the demand of the day and E-Governance is the tool that can be triggered to achieve the objectives of good governance through proper implementation of the need based public policies. However, lack of citizen awareness, political will, organizational and technological infrastructure etc has posed hindrances to the effective implementation of E-Governance. This has resulted in its minimal use. Many of the E-Governance projects have, therefore, resulted in wasteful expenditure and ineffective service delivery. The challenge is to overcome these hindrances and provide for an optimal exploitation of ICT in governance.