With the emergence of more informed and technology friendly civil society, citizens are becoming better aware of their rights and they expect the government to perform and deliver more efficiently as a result of which the entire concept of governance has changed. Government has to be now not only transparent and efficient but also accountable to citizens for its conduct. In achieving good governance, ICT (information and technology) tool are bound to play a crucial role. With good ICT support, it is realized that e-Governance is the next logical step in systems of governance in order to ensure larger contribution and deeper involvement of citizens, institutions, businesses and the private players in the decision making process. This paper seeks to understand the concept of e-Governance, identify the challenges and suggest suitable measures to overcome those challenges.