The party said after the identification, the worst-hit areas should be declared as hotspots where the testing should be intensified.
The SAD also called for the lifting of the curfew restrictions in the areas outside the hotspots to start the economic activity.
In a statement here, former minister and SAD spokesperson Dr Daljit Singh Cheema said areas with high COVID cases should be located "geographically, and not district-wise".
Only close-knit areas having high number of cases should be identified and isolated for containment, he said.
Dr Cheema said there was an urgent need to go in for aggressive testing in hotspots following reports that several positive cases were found to be asymptomatic.
"Aggressive testing is not being done on the ground despite announcements. There is an urgent need for more testing kits to make this a reality besides raising the medical infrastructure and safety standards for all frontline workers," he said.
The SAD leader stressed the need for the gradual opening up of the economy in areas from where coronavirus cases have not been reported for a stipulated time period.
The curfew is in place in Punjab till May 3 in the wake of the coronavirus outbreak, which has claimed 16 lives in the state so far. VSD RDK