The two parties also decided to set up district level coordination committees for any local adjustments and for streamlining the election campaign process.
A state level coordination committee has also been set by the two parties, comprising the Shiromani Akali Dal Secretary and Education Minister Daljit Singh Cheema and former minister Tikshan Sud.
A decision to this effect was taken at a high level meeting of the Coordination Committee of the SAD-BJP Alliance held at CM residence here later this evening.
The two parties also resolved to give "a befitting response to the mischievous, baseless and motivated propaganda of the frustrated, rejected and rootless Congress party, on various issues," the statement said
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The meeting was presided over by Chief Minster Parkash Singh Badal.
SAD president Sukhbir Singh Badal, the BJP ( Punjab) president Kamal Sharma, senior SAD and BJP leaders participated in the meeting .
The SAD meanwhile, announced its list of district-level observers for further strengthening coordination between the two parties at the grassroots level throughout the state.
The meeting dismissed "wildly speculative and utterly baseless" rumors being spread by vested interests.
"These canards run contrary to the spirit of strong emotional and ideological bonds between the two parties who symbolize age old social cohesion and communal harmony in the state, it added.
The meeting also accepted in principle, report of the six-member SAD-BJP panel that was set up to suggest ways to further streamline the governance in the state.