Please check(self-edited)
Dear Vidya,
Accept my heartiest congratulations on receiving the best award for the year. I have known you by sight and I am very happy about/with all your good achievements in your young age. You are a role model to many students in these days. I am really proud of you my friend. Let all your dreams come true by God’s grace. I want you to win many more honors and awards in the coming days.
Accept my heartiest congratulations on receiving the best award for the year.-->” Congratulations are certainly in order! Please accept my heartiest congratulations on winning the best student of the Year Award.”
I have known you by sight and I am very happy about/with all your good achievements in your young age. --->”I have known you well , and I am sure we will be seeing and hearing a great deal more about your remarkable achievements in the future. Keep up the good work.”
You are a role model to many students in these days. I am really proud of you my friend. Let all your dreams come true by God’s grace. -------->”No one deserves this award more than you. You are a great example to the rest of us.” or "You deserve to be proud of your achievement. May your future efforts be equally successful and rewarding." May God help you in realizing your dreams."
I want you to win many more honors and awards in the coming days.--> “I wish you unlimited success in the future.”
1 answer 
Here some further thoughts.
In your revision, you use "congratulations" twice in two sentences. Perhaps you might change one to "compliments."
I am not comfortable with the present perfect -- I have known -- combined with the adverb "well". It feels awkward, and I can't quite remember the technical reason behind my feeling. Although the present perfect is used to describe something that began in the past and continues into the present, it feels as if you are saying you no longer know the reader. I would either say "I have known you for some time now" or "I know you well."
I hope this helps.
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answered Oct 12 '12 at 18:08
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Thank you very much. Would you mind throwing some more light on the other letter?
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