CO2 capture from coal-fired power plants is necessary for continued use of coal as a fuel. Proven CO2 capture techniques such as amine absorption and oxyfuel combustion entail significant energy penalty leading to considerable decrease in the net thermal efficiency of the power plant. Recent studies of high-ash Indian coals show that CO2 has sufficient reactivity for coal gasification in temperature ranges of interest to IGCC. Against this background, we analyse in the present study, a new power plant layout which uses part of the sequestered flue gas stream for high-pressure gasification of the coal within the framework of an IGCC power plant with CO2 capture. Detailed thermodynamic calculations of the new plant layout, referred to here as Oxy-RFG-IGCC-CC, using commercial power plant simulation software show that the optimized Oxy-RFG-IGCC-CC plant with CO2 capture produces power at an overall thermal efficiency of 34.2%, which is nearly the same as that of current generation of pulverized coal boiler-based power plants without CO2 capture or that of a conventional IGCC with post-combustion capture. The proposed simpler layout is also 1.9% more efficient than a comparable CO2-capture-enabled IGCC plant that uses steam for coal gasification. © 2018, Springer-Verlag GmbH Germany, part of Springer Nature.