I am very happy to answer your query.
DST mainly focuses on Interdisciplinary Projects that means a project can be done by combining two or more subject (like Digital Preservation + Biochemistry, Library Science + Computer Science). So you shall read all the proposals, understand it and try to relate the topics with Library Science or Information Science or Digital Acrhiving etc...
Under ICPS Programme, you shall write a proposal on Preserving Manuscripts (No.3).
The most important requirement is the innovative character of the proposals. The proposal should contain novelty and significant contribution. It indicates what others have not said!
Also please be note that in the last 25 years only five projects were sanctioned among 200 plus proposals received from LIS people. You can able to estimate the acceptance rate of the proposals.
Thank you very much to both of you for your kind and valuable replies.