The problem is this would take a long time.You are talking about removing a large quantity of paperwork from organisations which move to bigger offices to accommodate the paper work.
And also when it comes to security,You saw what Anonymous did to Ukrainian government.The government in itself is not capable of such a large endeavour.I hope the implementing organisation selection depends more on their reputation instead of tenders and briberies.
You are underestimating what Indian Govt can do. Until recently (two months back), I was part of Ministry of Corporate Affairs, which completely eliminated paper for company registration. The implementation project started sometime in 2006 and was rolled out pan-India by 2008. Since 2009, no physical paper is used for registration; all are done electronically. Company registration in India now takes a week which used to take 3 months until 2006. It's a huge success. Similar thing is done for Passports too.
