The new children's orchestra to be established in a deprived area of Scotland's biggest city has been given a £1.3 million boost from the Scottish Government.

In a significant backing of the El Sistema teaching system, which originated in Venezuela and has been utilised in the Raploch estate of Stirling since 2008, the Government money will help launch and sustain the second "Big Noise" orchestra in Scotland. It will be based in Govanhill, Glasgow.

Richard Holloway, the chairman of Sistema Scotland, the charity that runs the Big Noise, now believes the project has been proved to work in Scotland and two or three more children's orchestras will be set up in the next three years.

Government research into the Big Noise in Raploch found it had transformed the lives of hundreds of children and now, backed by local groups and the city council, it is hoped the same results can be achieved in Govanhill.

Mr Holloway, the former Bishop of Edinburgh, said: "I think El Sistema and Big Noise has passed its test, we have shown in Raploch what it can do, and we are ready to expand. It is an extraordinarily significant day for us. I also think it is a brave thing that the Government are doing and I applaud them for it."

The four-year funding package was announced by Deputy First Minister Nicola Sturgeon and Culture Secretary Fiona Hyslop during a visit to Holy Cross Primary in Govanhill.

The money is coming from four different areas of Government spending: children and young people, culture, education and health, and social care.

Ms Hyslop said that combined approach was testament to the benefit the Government sees the Big Noise orchestras bringing to entire communities.

She added: "Sistema Scotland's work in Raploch is a fantastic example of how cultural activity can deliver real benefits to individuals, communities and wider society.

"It has improved the personal and social development of children in Raploch as well as their confidence, self esteem, social skills and ability to concentrate, and I look forward to seeing the positive impact of the programme in Govanhill.

"This substantial funding package for Sistema Scotland demonstrates that the value of culture and creativity is recognised across the Scottish Government."

Ms Sturgeon added: "Sistema Scotland's Big Noise orchestra is already transforming lives through music, and has the potential to improve confidence, wellbeing, health, education and community safety.

"Big Noise Govanhill is expected to make a real and positive difference to the community and the people who live there."

Sistema Scotland has been awarded a total of £1.325m for 2012 to 2016. A further application for £250,000 from the Infrastructure and Capital Investment portfolio's People and Communities Fund is also under consideration.

Since the Big Noise began in 2008, children from Raploch – once associated with deprivation but now known for its music and young orchestra – have benefited from the intense programme of classical music tuition.

Backed by patron Nicola Benedetti, the Big Noise was given nationwide attention earlier this year when it performed with Gustavo Dudamel and the Simon Bolivar Symphony Orchestra at the beginning of the cultural Olympic celebrations.

The Big Noise is already looking for seven new teachers to lead Big Noise in Govanhill and it is hoped to start in the beginning of March next year.

By 2015/16, more than 700 children in the south side of the city could be playing in a full symphonic orchestra, supported by a dedicated team of musician teachers. The plans will start with the tutoring of 380 nursery, P1 and P2 pupils in 2012/13.

The extension of the Big Noise technique has been the aim of local bodies in Govanhill, the Govanhill Housing Association and the Govanhill Community Development Trust.

A recent survey of tenements in Govanhill identified 52 ethnicities. It is an area of multiple deprivation, with life expectancy four years less than average.