Mananthavady diocese in the southern state of Kerala has said it is looking at a number of proposals after the arrest of Rev Robin Vadakkancheril at the end of last month.
The vicar of St Sebastian Church in Kottoyoor is accused of attacking the 17-year-old in a building where the church offered computer lessons.
He was removed from his position and stopped from conducting any priestly functions by the Bishop of the Mananthavady, according to a diocese spokesman quoted by Associated Press.
Investigating officer Sunil Kumar was quoted by the news agency as saying police are looking for at least five nuns who allegedly helped hide the attack.
Rev Vadakkancheril is among several Indian priests to be accused of abusing children.
Sexual violence against women and girls is common in parts of Indian society.
Pope Francis is due to visit the country later this year.