The Prajamandal movement in the Garjat State of Talcher assumed serious turn with the formation of Prajamandal on 6th September, 1038. A public meeting was held on that day in Koshala village of Angul where under the presidentship of Pabitra Mohan Pradhan Talcher Prajamandal was constituted. Other office bearers and prominent leaders of the movement in the initial phase were Dasarathi Pani, Maguni Chandra Pradhan, Gourishankar Pradhan and Krutibasa Rath.
The Prajamandal organised a lergely attended meeting on 16th September at Koshala village where the people openly accepted the call of the Prajamandal and expressed their deep cpmmitment to struggle till the last for the solution of their problems to the ultimate objective of the Prajamandal was to dislodge the ruling chief and merge in the national mainstream under the leadership of congress to drive out the British, initially they submitted a long list of demands of their ruler such as freedom to express their view to hold meetings and form associations, abolition of salamies presents and forced paymens, amendment of forest laws, reservation of 35 percent of jobs in the Talcher coal mines, and introduction of representative Government in the state.
The state administration took a hostile attitude and tried to supress the legitmate rising of the people. Indiscriminate arrest, police firing carying injury one men and many oppressive measures irritated the people.
The Prajamandal movement of Talcher drew the attention of Mahatma Gandhi who in his “Harijan” wrote articles about it and advised the people the leave their state in protest against the oppression of the Raja. By November 1938 many thousand people of Talcher came out from their place and stayed in the camps of Koshala, Kamasala, Natada, Changudia, Santarabanda, Bhalugadia and Paniola, and resolved to carry on their struggle against the ruler. Many of them lived in those camps from November, 1938 to June 1939.
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The heroic sacrifice of the people of Talcher drew the attention of many political leaders, and philanthropists in the country including Gandhiji.Even a property-British news paper like the “Statesman” became critical of the attitude of the raja.
The countrywide public opinion, role of Congress ministry and the determines struggle of the people led to an agreement which was signed between the Assistant Political Agent and the representatives of the people on 21st March, 1939. This was popularly known as Haneessay-mahatab pact, the former representing the British Government and the latter agrrieved people of Talcher.
The Raja of Talcher played mischief to implement this aggrement and ultimately on 23rd June, 1939 he issued a proclamation conceding the demands of Prajamandal. The people returned to their village by the end of the month. The concession was only a temporary truce and integration of the state was only possible conclusion.