A number of studies have examined the failures of e-government efforts from various theoretical perspectives in the domains of government-to-citizen (G2C) and government-to-business (G2B). However, only a few studies have been done in government-to-government (G2G) e-government projects. This paper examines the impasse reached during the implementation of a statewide Digital Secretariat Project in India through the lens of stakeholder theory. A qualitative case study approach employing semi-structured interviews with the stakeholders was employed to explore the issue. The results reveal the importance of power dynamics, which can stall the entire project. In a G2G project, that is interactional in nature and has to be used by multiple departments, it is crucial for the implementing agency to identify dominant stakeholder departments and take them into confidence right from the beginning of the project. In such cases intervention by higher level government offices is important to impart saliency to the implementing agency and prevent any other dominant stakeholder from stalling the project. Undertaking such widespread projects without strong government support can lead to failure of implementation and waste of important public resources. Implications for theory and practice are discussed.