Temasek Holdings Pte Ltd., the Singapore government's investment company, said it would not invest in SpiceJet Ltd., an Indian low-fare carrier that started flying in May, because of a disagreement on terms.

"We have decided not to proceed with the investment in SpiceJet as both parties could not come to an agreement on certain terms,'' Temasek's spokeswoman said.

SpiceJet on September 8 said it had plans to sell $20 million worth shares to overseas investors, including Singapore's Temasek Holdings, to fund plane purchases.