Sport and recreation minister Morris Iemma said the grants were to help not-for-profit sport and recreational groups and local councils to develop local sporting facilities in their area.

He said the program was one of the most important funding programs for sport right across the state.

"Successful projects under last year's program ranged from the construction of playgrounds, synthetic cricket pitches, skate parks and the installation of flood lights," Mr Iemma said.

Application packs are available from the NSW Department of Sport and Recreation, local councils, and the local state member of parliament, or by accessing the department's website on www.dsr.nsw.gov.au.