The money, also from the Strategic Waste Fund, will help the authority meet its 28% recycling target for 2005/6.
North Lanarkshire aims to expand its kerbside collection scheme from 52,000 households to 119,200, increase green-waste collections and develop six recycling sites.
And it proposes to run an education and awareness campaign, a waste-minimisation programme and market-development activities.
Environment Minister Ross Finnie said: The Executive is committed to transforming the countrys record on waste reduction, recycling, composting and recovery. This substantial funding will help ensure many more North Lanarkshire citizens have access to recycling facilities.
Our National Waste Plan, which we are backing with significant resources, is beginning to show a real difference on the ground. Every month recycling becomes easier for Scots.