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Using salesforce lightning connect now we are able to connect external datasource. But does it mean we can connect to another Salesforce Org? if it is kindly please explaing the way of doing.

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Yes this is possible. Here is the rough outline of steps, and note that this is only one simple way of doing this, there are other options I'm not covering here, like OAuth and per user access:

  1. In your "app" org, setup a new External Data Source - Setup > Develop > External Data Sources
  2. Give it a name and label and choose Lightning Connect: Salesforce from the Type menu.
  3. Set your connection endpoint information in the Parameters section.
  4. I believe in your source org you will need to whitelist all Salesforce server IP ranges, but I can't recall.
  5. Choose Identity Type of Named Principal and Authentication Protocol of Password Authentication. Enter your login credentials. NOTE: this will only allow you to authenticate into the external object source org as a specific user, which may or may not be desirable from a permissions standpoint. You can also setup per user access, which I'm not covering here.
  6. Create a new External Object - Setup > Develop > External Objects - using this newly created External Data Source in that object creation dialog.
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