Created around 1965, mainly to accommodate HAL employees, Sunabeda is a planned and organized township. It is situated around 1,000 meters above sea level. Prior to its creation, this place was known as Old Sunabeda which was occupied by native tribal community. About a thousand tribals in and around Chikapar village were displaced and rendered homeless to give way for the HAL factory. Even though the factory was made with Russian collaboration, the township and factory buildings were executed by state engineers of Odisha. The project was named Aero Engine Factory (AEF) Project. The residential colony is called AEF Colony with a Chief Engineer responsible towards it.