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I saw this article in today's (6 Jan) edition of the Kolkata TOI.
It does not state what the prizes are, nor gives specifics or directions on what to write about; it seems to leave it open to the bloggers themselves. However, it does state that the posts have to be relatively short (maximum 500 words).
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No topic?? How does one participate without knowing what to write?
Amendment: I have just now clicked on "this article" and it did not work for me. Here is the link to the article in un-linked form:
http://epaperbeta.timesofindia.com/Article.aspx?eid=31812&articlexml=Bloggers-get-a-toehold-at-litfest-06012015002050
I was about to write, link was broken..
@Renie Stop taboo'ing words in links 
Interesting... let me see if the same news clip is there in the Delhi edition too.
Looks interesting... Even Jaipur Lit Fest organized contests for bloggers this year... though I couldn't participate.. got to know about them too late..
Lucky Kolkata (WB) guys (Bandu and Bindus)...
The details for the above contest are clearer here:
http://www.kolkatabloggers.com/2014/12/
It isn't clear if bloggers from outside Kolkata are eligible.